The high VAT / Sales Tax being levied by the Andhra Pradesh government is encouraging cross-border smuggling of petroleum products from Karnataka, BJP State spokesperson D. Venkateswara Reddy has alleged.
Responding to a report published in The Hindu with the title, ‘Fuel pump owners at their wits’ end’, Mr. Venkateswara Reddy, in a statement on Sunday, said that 50 tankers of petroleum products were being illegally transported to Kurnool, Chittoor and Anantapur districts that border Karnataka where the taxes on fuel were comparatively less.
“This apart, APSRTC is buying diesel at a price lower than the dealer price,” he alleged.
“The checking mechanism has failed in the State, as a result of which it is losing a lot of Sales Tax revenue,” he said.
Terming it a major scam, he demanded transparency in the fuel purchase process in the APSRTC, and wanted it to buy fuel directly from the petroleum refining companies as it used to prior to March 2022.
