Patna,(BiharTimes): The Bihar cabinet on Tuesday hiked the value-added tax (VAT) on petrol and diesel.

The tax on petrol has been raised from 24.5 per cent to 26 per cent and on diesel from 18 per cent to 19 per cent.

According to principal secretary, cabinet coordination, Brajesh Mehrotra, the increased VAT rates would result in a monthly gain of Rs 22.42 crore for the exchequer.

The decision follows the hike in VAT on almost every item sold to compensate for the loss in internal revenue after the imposition of prohibition on April 5 last.