MP govt to impose 5 pc VAT on liquor, duel prices to generate funds

In view of extensive damage caused due to heavy rains in Madhya Pradesh, the state government, besides seeking central assistance, has also decided to impose five percent VAT on liquor and petrol and diesel to generate additional funds needed to meet the crisis. With this diesel, petrol and liquor became costlier in Madhya Pradesh with the increase of five percent value-added tax on the two fuels and liquor for increasing revenue, a senior official said on Friday, adding that it is a temporary measure in the given circumstances.

The Madhya Pradesh government pleaded that the decision was taken to tackle the increasing financial burden due to property and crop destroyed during the recent heavy rains and subsequent floods. The hiked prices is being implemented from Friday midnight, the official added.