The Hindu Business Line : Cut in VAT on petrol, diesel ‘difficult’: AP Minister

The Andhra Pradesh Finance Minister, Mr K. Rosaiah, today said that it would be difficult for the State Government to slash value added tax (VAT) on petrol and diesel to bring down the burden of price hike announced by the Centre.

Addressing a press conference, Mr Rosaiah said that the State was the first to announce a move to absorb the entire Rs 50 a cylinder hike on LPG, mainly to reduce the burden on women.

However, the Government was not in a position to bring additional cuts on VAT on petrol and diesel.

This assumes importance in the backdrop of UPA Chairperson Ms Sonia Gandhi reportedly calling upon Congress ruled States to bring down VAT to reduce burden on consumers.

He said that the Government has budgeted several projects based on the income generated from petrol and diesel, and a mid-course correction due to the recent hike of Rs 5 a litre on petrol and Rs 3 a litre on diesel will make the going tough.

Welfare measures

Already, the State has embarked on several welfare measures and has committed significant amounts to them. In addition, it was also instrumental in the Centre’s decision to bring about a major farm loan waiver scheme.

To this, the State has added more components to support farmers involving about Rs 1,100 crore.

Mr Rosaiah said the State is already getting much less from Central Sales Tax which was reduced from 4 per cent to 3 per cent, causing a loss of Rs 600 crore.

This was further brought down to 2 per cent. The State imposes VAT of 33 per cent on petrol and 22.25 per cent on diesel, which is amongst the highest in the country.

Meanwhile, the Commercial Taxes Minister, Mr K. Ramakrishna, said that the Government was open to holding parleys with the striking cab owners on VAT. A committee has been constituted to sort out issues.

More Stories on : Petroleum | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page