Defending his government on the high VAT on petrol in the state, the CM blamed the UPA government’s partial approach which, he said, had made Punjab an economically weaker state. The SAD-BJP government levies the highest rate of tax on petrol in the northern region, making it costlier among the region's states.

The Punjab Government has levied a total 32.75% tax on petrol. This includes 27.5% VAT, 10% surcharge on VAT, 1.5% infrastructure development cess and 1% on petrol. VAT on petrol in Haryana stands at 20.5%, Himachal 24%, Rajasthan 26% and UT Chandigarh 22%.

Owing to the disparity in local taxes, petrol in Punjab costs Rs 7 to Rs 8 as compared to neighbouring states.

Source: Chandigarh Tribune, India,  dated 12/11/2011