Patna,(BiharTimes): The Nitish Kumar cabinet on Tuesday gave its approval to a proposal of finance department to increase Value Added Tax (VAT) on petrol and diesel from existing 20 per cent to 30 per cent.

Principal Secretary Cabinet Coordination Department Brajesh Mahrotra told reporters that an additional Rs 330 crore would be mobilised annually by increasing the surcharge.

The cabinet also okayed a proposal to increase dearness allowance by 11 per cent to employees and pension holders with effect from July 1, 2015.

Now they will get 234 per cent DA in place of 223 per cent at present.

It also gave its nod to creation of 46 posts of different levels of Bihar Vikash Mission headed by Advisor to the chief minister Prashant Kishor for implementation of “Seven Resolves” of the chief minister. In all 27 agenda came up at the cabinet meeting.

It is only last month that the state government increased VAT on 13 items, including cloth. The cloth merchant are on warpath over the hike of VAT.