Punjab govt hikes bus fares after increase in VAT on diesel and petrol
The move comes two days after the state government announced an increase in Value Added Tax on petrol and diesel by 61 paise per litre and 92 paise per litre respectively.
Chandigarh: The Punjab transport department announced a 23-paise per km hike in bus fares for ordinary buses on Saturday, citing rising fuel costs. This follows the state government's recent increase in Value Added Tax on petrol and diesel by 61 paise and 92 paise per litre, respectively.
In a notification released by the department on Saturday, the fare for ordinary buses has gone up from 23 paise to 145 paise per km per passenger. The hike extends to other bus categories as well.
Bus fare hike
The free for the heating, ventilation and air conditioning (HVAC) buses has been increased by 28 paise to 174 paise per passenger per kilometre. While the fare for integral coaches went up by 41 paise to 261 paise, and for super integral coaches by 46 paise to 290 paise.
As per the notification, bus fares will be rounded off to the nearest Rs 5 if the calculated amount exceeds Rs 2.5. For example, if the fare comes to Rs 22.5, passengers will be required to pay Rs 25.
Punjab Govt increases VAT on Diesel, Petrol
Earlier on September 5, Petrol and diesel prices in Punjab incresed by 61 paise per litre and 92 paise per litre, respectively, following the state Cabinet's decision to increase the value-added tax (VAT) on fuel.
The Cabinet approved to raise VAT on diesel from 12 per cent to 13.09 per cent and increased tax on petrol from 15.74 per cent to 16.52 per cent. The state government also levies a 10 per cent surcharge on VAT.
VAT on petrol was raised by 61 paise and 92 paise a litre for diesel.
(With PTI inputs)
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