VAT increases petrol, diesel, LP gas prices from January

12 December 2023 10:05 am Views - 2096

Colombo, Dec. 12 (Daily Mirror)  - After imposing the Value Added Tax (VAT), a litre of petrol (Rs. 346) will increase by Rs. 62.28, and its new retail price will be Rs. 408.28. The price of a litre of diesel will increase by Rs. 59.22, and its new retail price will be Rs. 388.22, Ceylon Petroleum Corporation's (CPC) Jathika Sevaka Sangamaya (JSS) Secretary Ananda Palitha said.

He told the media that the VAT will be added to petrol, diesel and LP gas from zero to 18 percent in January.

Currently, the government collects four types of taxes: the Social Security Tax, Excise Tax, Customs Tax and Port Security Tax.

"However, the government claimed that the tax will not be added to the electricity bill. But 40 percent of the fuel is used for the total generation of electricity in the country. The use of fuel has decreased these days due to heavy rains.

After imposing the VAT on diesel, the electricity charges will definitely increase according to the electricity adjustment fee," Palitha said.

He said the Water Supply Minister also claimed that the water bills will be issued according to a formula while adding the electricity adjustment fee.

After increasing diesel prices by 59.22 percent, the water tariff will increase by 30 percent, Palitha said.

Meanwhile, Palitha claimed that the VAT will be imposed on domestic LP gas as well. Accordingly, the price of a 12.5 kgs cylinder of domestic gas will be more than Rs. 680.

However, after increasing the Value Added Tax (VAT) from January 1, the Rajapaksas are going to heaven hanging on the tail of the current UNP government while putting the people in hell, Palitha added.