Patna,(BiharTimes): The state cabinet on Tuesday decided to  make an upward revision of the value added tax (VAT) on  diesel. The state would now impose 18 per cent VAT on diesel  against the earlier rate of 16 per cent. 

So diesel would now be costlier by Rs 3.02 for purchase of  each litre––from Rs 55.12 to Rs 58.14. It would come into  effect immediately.

According to principal secretary (cabinet secretariat) B  Pradhan the state government had reduced VAT on diesel by two  per cent on September 21, 2012. Now that this reduction has  been undone, 18% VAT would be imposed on diesel which would  be on a par with Jharkhand.

He said the dipping diesel prices were causing a reduction in  the revenue of the state. Thus, the decision was taken to do  away with the September 21, 2012, cut in VAT.

In absolute terms, the state now expects to earn an  additional Rs 26.5 crore in revenue every month.