Andhra Pradesh

Andhra Pradesh cuts VAT on fuel by ₹2 per litre

In what will come as relief to the common man reeling under a steep hike in fuel prices, the Andhra Pradesh government has decided to reduce the Value Added Tax (VAT) by ₹2 a litre from ₹4 a litre.

This was announced by Chief Minister N. Chandrababu Naidu while introducing a resolution in the Assembly on Monday, urging the Central government to slash excise duty and Income Tax dividend and cess being levied on petroleum products to bring further relief to people. The resolution was adopted unanimously.

“The Centre has shown no concern by ruling out a cut in these taxes,” Mr. Naidu said.

“The decision to reduce the VAT will result in a burden of ₹1,120 crore per annum on the State exchequer. The government would have to forego a tax revenue of ₹820 crore towards diesel, and ₹300 crore on petrol. But, honouring the sentiments of people, the government has decided to slash the VAT,” he said, amidst thumping of desks by the treasury benches. Reeling out statistics on an “abnormal increase” in taxes levied by the Centre during the last four years, Mr. Naidu said the Central government had collected ₹23 lakh crore.

As the Centre had increased the tax by more than 90% and filled its coffers at the cost of the economy, its decisions had resulted in prices of essential commodities going up.

“The Centre should release a White Paper on the utilisation of the ₹23 lakh crore,” he demanded.

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Printable version | May 25, 2022 10:52:04 pm |