With this move in effect, the difference in the 4 states will not be more then 4-5 paise per litre.
The government of Himachal Pradesh has also increased VAT on diesel by 16 per cent albeit with the condition that it will be enforced once other states adopt measures essential to this decision.
The move to implement a uniform tax structure (UTS) comes as a measure to eliminate tax evasion and smuggling of goods through state borders. However, fuel pump owners have called attention to the fact that unless Chandigarh raises tax on diesel, the northern states will not be able to amass the complete advantage of the uniform tax regime.