Bhopal, Jan 16: The Madhya Pradesh government ordinance to impose 50 paise cess on petrol and diesel has got approval from Governor OP Kohli. A notification regarding 50 paise cess on petrol and diesel is likely to be issued on Wednesday, while the prices would be revised on Thursday.Also Read - GST Council Extends Concessional Rates on Covid Medicines Till Dec 31; Keeps Petrol, Diesel Out of Tax Ambit
On January 3, the Madhya Pradesh cabinet chaired by Chief Minister Shivraj Singh Chouhan decided to levy 50 paisa cess on per litre of petrol and diesel. The cess has been levied for financing infrastructure development and traffic improvement in the state. Also Read - Horrific! Couple Abducted From Delhi, Killed In MP, Bodies Dumped In Different States, Say Police
The Madhya Pradesh government assigned approval to an ordinance MP Motor Speed Bill 2018 which enabled the government to levy petrol and diesel by 50 paise per litre. With the new cess the state government targets raising Rs 200 crore annually. Also Read - Priyanka Chopra Jonas Turned NYC Airport into Her Runway in Rs 3 Lakh Dior Leopard Print Hoodie
The Madhya Pradesh government, in October last year, had reduced value-added tax (VAT) on petrol and diesel by 3 per cent and 5 per cent, respectively. The state government had also withdrawn the additional cess of Rs 1.50 per litre on diesel.