Jharkhand hikes value added tax on diesel

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"The VAT has been hiked from 14.5 percent to 20 percent on diesel," Cabinet Secretary Aditya Swaroop told reporters.

The Jharkhand government had reduced VAT on diesel from 18 percent to 14.5 percent in 2008. The VAT was reduced on protests of petroleum dealers of the state.

The diesel prices in the state will now increase by Rs.2 per litre.