The Himachal Pradesh Government, aiming to improve its depriving financial health, has again put extra burden on common man by increasing value added tax (VAT) on diesel by one percent, which takes up its price by 48 paise a litre.

Himachal Pradesh Cabinet, in its latest meeting, decided to increase the VAT on diesel by one percent. However, the government still defending its decision as they pleaded that it’s still lower by 0.12 percent as compared to VAT rate applicable in neighboring Punjab.

The VAT hike is expecting to add to annual revenue earnings to the tune of Rs.26 crore, which will give enough reprieves to the empty coffer of the state.

Earlier this month, the state government increased VAT on petrol from 25 to 27 percent, which increased the price by around Rs.1.20 per litre.