Bus fare up, tax on petrol, diesel hiked in Haryana

Tribune News Service
Chandigarh, April 30

The Haryana Cabinet today took a slew of decisions, including bus fare hike, increase in VAT on petrol and diesel, market fee on vegetables and ban on purchase of new cars and jeeps, to mop up resources in view of the economic crisis due to the Covid epidemic. These decisions were taken at a meeting presided over by CM Manohar Lal Khattar today.

Bus fare hike

The state government has decided to increase bus fare in the state for ordinary, luxury and super-luxury buses from 85 paisa per passenger per km to Rs 1 per passenger per km to partially meet the increased cost of operation of buses from Rs 37.48 per km in June 2016 to Rs 52.23 per km in December 2019.

No vehicle purchase

The state Cabinet decided to ban purchase of new vehicles, including cars and jeeps, except buses for public transport and vehicles used for emergency responses during the current financial year.

The ordinary/standard bus fare will be increased from 85 paisa per km to 100 paisa per km up to a distance of 100 km and 105 paisa per km for travel of more than 100 km.

The bus fare for other types of services, including Volvo and Mercedes, will be increased to 150 paisa to 250 paisa per passenger per km.

VAT on petrol, diesel

The Cabinet today increased VAT rate by Re 1 per litre for petrol and Rs 1.1 per litre for diesel. The rate of tax will be restored to 25 per cent on petrol and 16.4 per cent on diesel — that are the pre-October 4, 2018 levels — and the fixed rate of tax per litre may be increased from Rs 8.15 per litre to Rs 9.20 per litre in case of diesel and from Rs 14.25 per litre to Rs 15.20 per litre in case of petrol.

Industrial package

To facilitate industrial units in the state in retaining their employees in times of financial crisis brought in by the Covid pandemic, the state government has formulated ‘Haryana MSME Revival Interest Benefit Scheme’ for MSME units so that they could pay wages to all their employees.

The MSME units working in Haryana on or before March 15, 2020, will be eligible for 100 per cent interest benefit on loans availed for payment of the wages of employees or other expenses up to a maximum of Rs 20,000 per employee for a period of six months.

Market fee

The state Cabinet decided to impose 1 per cent market fee and 1 per cent Haryana Rural Development Fund (HRDF) on the sale of fruits and vegetables in the mandis.

Hospital purchase

The Cabinet accorded ex post facto approval to the proposal to purchase Gold Field Institute of Medical Sciences and Research in Chhainsa village through the e-auction sale process and running it as Government Medical College.