J&K Govt announces tax hike on petrol, diesel, gas, effective April 1

Ziraat Times Team Report

Srinagar: The Government of Jammu & Kashmir has issued a notification today enhancing  the tax and cess on motor spirit (petrol), diesel oil, aviation turbine fuel (ATF), and natural gas. The changes, announced by the Finance Department through S.O. 76, will take effect from April 1, 2025, impacting fuel prices across the Union Territory.

According to the notification received by Ziraat Times, the tax rate on petrol has been set at 24% minus ₹3.50 per litre, with an additional cess of ₹2.00 per litre. Similarly, diesel oil will now attract 16% tax minus ₹4.50 per litre, along with a cess of ₹1.00 per litre. The government has also imposed a 5% tax on ATF and 21% tax on natural gas.

The notification, signed by Santosh D Vaidya, IAS, Principal Secretary to the Government, Finance Department, emphasizes that the new rates will replace all previous notifications on the subject. The order has been circulated to all financial and taxation authorities, including the Principal Secretary to the Lieutenant Governor and the Excise Commissioner, J&K.

This revision comes amid fluctuating global fuel prices and the UT administration’s efforts to regulate fuel taxation while balancing revenue generation. With the new cess and tax structure, fuel prices in Jammu and Kashmir are expected to rise, potentially affecting transportation costs and general inflation.

Industry experts and transport associations have expressed concern over the impact of these changes on common consumers. “An increase in fuel prices will directly affect the cost of essential goods and transportation services. We urge the government to reconsider the cess to prevent additional burden on the public,” said a representative of a local transporters’ association.

As the new tax rates take effect from April 1, 2025, fuel station owners and consumers across the UT are preparing for potential price fluctuations.