For the second time in a month, the Himachal Pradesh government has raised value-added tax (VAT) on diesel.
The state Cabinet, which met here on Tuesday, raised VAT on diesel from 9.6 per cent to 11.5 per cent.
This move is expected to bring an annual revenue of Rs 27 crore to the state.
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The decision was taken despite the Union government has been reducing prices of petrol and diesel due to the rapid fall in oil prices in the international market.
The Cabinet also gave its nod to amend the rule 40 of the VAT Rules, 2005, and the sub-rule seven of the Central Sales Tax (Himachal Pradesh) Rules, 1970.
Approval was also given to table the Himachal Pradesh Town and Country Planning (Amendment) Bill, 2014, in the next Assembly session.
The move will pave the way for regularisation of unauthorised constructions across the state.