Special Correspondent

ST of 33 p.c. on petrol, 22.25 p.c. on diesel highest in the country: Telugu Desam Party

‘Crude price rise a bane for common man and boon to government’

Hikes and rollback along with fluctuations in world oil prices sought

HYDERABAD: Telugu Desam Party has charged the State government with hiding from the people, the fact that sales tax of 33 per cent on petrol and 22.25 per cent on diesel was the highest in the country and if it wished it could bring down the tax and price by at least Rs. 8 a litre.

Addressing a press conference here on Friday, TDP leaders M. V. Mysoora Reddy, K. Vijayarama Rao and M. Jagannadham said the government was keeping it as a closely guarded secret, that every time there was a rise in crude oil price, “it is a huge burden on common man but a festival time for the State” as the sales tax revenue shot up accordingly.

It was surprising that the government was not prepared to forego even this increased portion of the revenue, leave alone bringing down the quantum of tax, Mr. Mysoora Reddy said.

People should know that the price of petrol was just Rs. 21.18 a litre and rose to Rs. 57.68 after inclusion of Customs duty, excise duty, sales tax, education cess, road development cess royalty, corporate tax and service tax levied by Centre and State governments.

Global price link

Over period of time, the Centre and the State governments have been creating an impression that the price of petrol and diesel were higher than the tax component but the latter constituted the lion’s share, he said.

The party demanded that the time has come for both the governments to link this taxation with international crude oil price by actually reducing tax when the oil price goes up and reversing the same when it comes down.

On the State government’s decision to absorb the Rs. 50 hike in LPG cylinder, was a token as the State had earned Rs. 1800 crore during the last four years levying VAT of 12.5 per cent or Rs. 40 per cylinder.

Moreover the LPG cylinder price was hiked twice by Rs. 20 each, during the four years. The decision was taken to avoid earning the wrath of women.