In view of extensive damage caused by heavy rains in Madhya Pradesh, the state government on Friday decided to impose five per cent VAT on liquor, petrol and diesel to generate additional revenue, said an official.
The state suffered an estimated loss of Rs 12,000 crore due to excessive rains this monsoon, a senior official said here.
The five per cent Value Added Tax will be a temporary measure, he added.
The increase in prices will come into effect from midnight, he said.