Motor vehicles, two-wheelers, petroleum products like oil and lubricants, electronic goods, paper and hosiery will be expensive now on, with Maharashtra hiking the value-added tax (VAT). The tax on petrol has also been hiked by Rs 1.50 per litre. There is no change in diesel price. Petrol will now cost Rs 70.63 per litre in Mumbai.

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The state cabinet on Friday decided to raise the standard rates of VAT from 12.5% to 13%. The lower slab for levy of VAT will be increased from 5.5% to 6%. This will help the state bankroll welfare schemes and implement the seventh finance commissions recommendations.

The sales tax department accounts for the highest chunk of the government's projected revenues (30.08%) for 2016-17 at Rs 81,437.69.

Maharashtra is already reeling under a massive debt burden of Rs 3.50 lakh crore and will have to face an additional outgo of Rs 14,000 crore in the very first year as the pay commission benefits have to be extended to 12 lakh government employees and teachers.

The government will, subsequently, have to bear an additional Rs 6,000 crore towards increased salary and pension payout.

Though Maharashtra has hiked the standard tax rates, they will continue to be lower than those of Bihar and Gujarat (15%), Karnataka, Tamil Nadu, West Bengal, Rajasthan and Andhra Pradesh (14.5% each).

What costs more

Vehicle spare parts, TV sets, refrigerators, medicines, milk powder, masalas, mithai, farsan, processed fruit and vegetables, furniture, cycles, non-ferrous metals, paper, umbrellas and writing equipment.

What is exempted

Milk, sugar, books, medicines for cancer and renal problems, farm equipment, aid for the handicapped, cattle and fish feed, organic fertilisers, seeds, solapuri chadars and towels.