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Updated: June 27, 2010 00:21 IST

Some relief for petrol, diesel users in A.P.

Special Correspondent
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Andhra Pradesh Chief Minister K. Rosaiah. Photo: K.R. Deepak
THE HINDU Andhra Pradesh Chief Minister K. Rosaiah. Photo: K.R. Deepak

Chief Minister hints at cut in Value Added Tax

Petrol and diesel users in Andhra Pradesh can expect some relief from the hike in petrol and diesel prices by way of a cutback on Value Added Tax (VAT).

A proposal to exempt from VAT the additional Rs.3.50 a litre for petrol and Rs. 2 a litre for diesel will be tabled before the Cabinet at its meeting here on July 1. (It is estimated that the government will earn additional tax revenue of about Rs. 450-500 crore on account of the latest hike).

Chief Minister K. Rosaiah disclosed this to a group of journalists who met him on Saturday but did not indicate the quantum of exemption. He made it clear that the proposed relief will be given only on the additional increase in prices.

The across-the-board fuel hike has sparked protests by the Opposition parties in a State where retail petroleum prices are among highest in the country due to the stiff tax rates here - a whopping 33 per cent on petrol, 22 per cent on diesel and four per cent each on kerosene and LPG. In fact, the government gets a revenue windfall every time the Centre hikes petroleum prices.

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