Delhi government hikes VAT from 20% to 30%, fuel prices set to go up

The Aam Aadmi Party (AAP) government in Delhi on Tuesday passed the amendment in VAT bill, increasing the Value Added Tax from 20% to 30%.

With this move of the Arvind Kejriwal government, prices of petrol, cooking gas, CNG and liquor are set to go up.

There was heavy drama in the Delhi Assembly while the bill was being passed. While Bharatiya Janata Party (BJP) MLA Vijender Gupta reportedly tore the bill, another party legislator OP Sharma broke a microphone while the bill was being passed.

Justifying the move, Delhi Deputy Chief Minister Manish Sisodia said that the bill was passed only for the sake of flexibility for the government.

The Delhi government had on Monday tabled the proposal in the Assembly to increase the upper limit on VAT from 20% to 30%.

The Aam Aadmi Party government had on June 25 presented a Rs 41,129 crore budget. Calling it the country's first "Swaraj" Budget, Sisodia had said the government was planning to bring down VAT rates for certain items.