The Shiromani Akali Dal (SAD) today supported the SAD-BJP led Punjab government's move to increase VAT on diesel, cold drinks and cigarettes, saying tax was raised to mobilise funds for development.
In a statement here, SAD general secretary and core committee member Maheshinder Singh Grewal said the rate of diesel in Punjab was among the lowest as compared to other states in the country.
He said it was appropriate for the government to increase VAT on diesel by only one percent keeping in view the State's agrarian economy.
Grewal lauded the government's "bold" move to increase VAT on cold drinks and cigarettes by 5 and 9.5 per cent, respectively, saying the funds so generated could be used to give a further boost to development in the State.
In a notification issued on October 1, Punjab Excise and Taxation department increased VAT rate on diesel (other than premium diesel), cold drinks (including aerated drinks, soda) and Cigarette and Cigar by 1 per cent, 5 per cent and 9.5 per cent respectively.
Reacting to Punjab Congress President Partap Bajwa's statement on this issue, Grewal said the latter's statement had been made with the sole motive of warding off criticism of his own "failures".
SAD general secretary said the PPCC President never voiced his resentment when petrol and diesel rates were increased scores of times during UPA rule.
He also asked Bajwa to explain why he did not appreciate the move of Prime Minister Narendra Modi to cut petrol prices recently.
Bajwa yesterday had criticised the state government for raising tax on diesel.
