Bhopal, September 23: Waking ahead in the Kamal Nath led government's decision in Madhya Pradesh to to increase the Value Added Tax on petrol and diesel by five per cent, the state BJP members are all set to launch a protest soon.
"We will soon announce a statewide agitation against the five per cent hike in VAT on petrol and diesel in Madhya Pradesh. We will finalise details of the agitation soon after our state president, Rakesh Singh returns from his foreign tour", confirmed MP Assembly Gopal Bhargava today.
The Congress had promised to reduce the cost of two fuels in the state by Rs 5, in its manifesto before coming to power in the state last year. "It was not 'Vachan Patra', but false manifesto. The increased cost of the two fuels is causing lot of hardships to people", he said.
The petrol pump owners in the state have also opposed the VAT hike, claiming that prices of two two fuels in Madhya Pradesh are now highest in the country. Citing extensive damage caused by heavy rains in MP, the Congress-led state government increased five per cent VAT on petrol and diesel from Friday midnight to generate additional revenue. It also hiked the VAT on liquor by five per cent.
With the government's decision, the VAT on diesel has gone up to 23 per cent, in addition to cess of about Rs 2 per litre. Similarly, the VAT on petrol has gone up to 33 per cent in addition to cess of about Rs 3.5 per litre. Meanwhile, a senior government official said as per initial estimates, the state has suffered a loss of Rs 11,900 crore due to excessive rainfall this monsoon and that the five per cent VAT hike would be a temporary measure.