Chandigarh, July 17: In a bid to augment tax revenue, Punjab government has increased the Sales Tax (ST) on petrol from 20 to 25 per cent and decided to implement Value Added Tax (VAT) from April 2004. The special meeting of state cabinet here yesterday under the chairmanship of Chief Minister Amarinder Singh also gave nod to impose ST on luxury purchases through defence canteens, among other measures, to mop up additional resources to the tune of Rs 200 crore every year, an official spokesman said here today.

The cabinet also decided that doctors in the state would not get non-practising allowance (NPA), but would be free to do private practice. The employees on retirement would continue to get their 12 years pension commuted at a rate of eight per cent instead of the present rate of 4.75 per cent, the spokesman said.

Additional excise duty on textiles, sugar and tobacco has been replaced with four per cent ST, he said, adding the government would also impose ST of 12 per cent against four per cent at present on all lubricants. With a view to plugging large-scale ST evasion, the council of ministers had also approved the introduction of Exim forms from September 01, 2003.

Bureau Report