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Bus fare up, liquor to cost less in Himachal

Dharamsala: Bus fare in Himachal Pradesh was on Friday hiked sharply following the rise in prices of petrol and diesel but liquor will be cheaper in the State due to cuts in Value Added Tax (VAT)and license fee.

A meeting of the State Cabinet presided by Chief Minister P.K. Dhumal decided to hike fares in buses by 25 per cent in the wake of recent increase in prices of petrol and diesel by the Centre. After Friday’s decision, the fare will be increased by 92.5 paisa per km on hill roads and 59.38 paisa per km on plain roads of the State, Chief Secretary Ravi Dhingra told reporters here. The Himachal Pradesh Road Transport Corporation has at present a liability of Rs 130.39 crore, he said.

The Cabinet approved a new excise policy for 2008-09 reducing VAT on Indian Made Foreign Liquor (IMFL) from existing 20 per cent to 12.5 per cent, Mr. Dhingra said briefing on Cabinet decisions. The Government also decided to reduce license fee on IMFL from Rs. 160 to Rs. 125 and on country liquor from Rs. 130 to Rs. 95 per litre, he said.

After Friday’s decision, the cost of IMFL will come down by Rs. 23 and country liquor by Rs. 15, the Chief Secretary said.

The decision to make liquor cheaper was taken to check smuggling from neighbouring Punjab, Haryana and Chandigarh where VAT is only 4 per cent and also enhances revenue earning in the hill State, he said. -- PTI

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Bus fare up, liquor to cost less in Himachal

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