Chandigarh, July 31
Petrol will cost more in Punjab from tomorrow and so will the items sold through CSD canteens.

This follows the approval of the Council of Ministers on July 16 to hike the sales tax on petrol from 20 per cent to 25 per cent, which is expected to accrue an additional Rs 65 crore on the existing revenue of Rs 350 crore per year.

The notifications in respect of the sales tax hike on petrol and CSD items will be issued tomorrow, says Mr Mukul Joshi, Principal Secretary, Excise and Taxation. The sales tax at the rate of 50 per cent of the ordinary tax on CSD items is expected to generate a revenue of Rs 50 crore per annum.

Mr Joshi said the notification in respect of the levy of sales tax at 4 per cent each on textiles, sugar and tobacco in place of additional excise duty would be issued later. This would fetch the state a revenue of Rs 55 crore.