State government of Madhya Pradesh on 16 December 2014 increased Value Added Tax (VAT) on petrol and diesel by 4 percent. With this decision, now, 27 percent tax would be levied on diesel and 31 percent on petrol in the state.
The decision was taken by the state cabinet in a meet chaired by chief minister Shivraj Singh Chouhan.
On the other hand, the state cabinet also decided to reduce VAT on cigarettes from 27 percent to 13 percent.
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