VIJAYAWADA: With fuel prices reaching an all-time high, the state government which currently collects an additional Rs 4 per litre on petrol and diesel over the Value Added Tax (VAT), may slash the extra amount by Rs 2.The government which set itself the target of generating a revenue of Rs 10,600 crore on petroleum products in 2018-19 fiscal may have to forgo the possibility of reaching the target if it cuts down additional VAT.
A source in the Finance Department told TNIE that there was a demand to reduce the burden on consumers from various quarters, particularly the lorry owners’ association. After the Goods and Service Tax (GST) came into existence, the state government can get direct tax only from petroleum and liquor products.
“At this juncture, we are not sure if the government will go ahead with the proposal,’’ an official from the Commercial Taxes Department said and observed that any such move would be used to mount pressure on the Centre to reduce taxes on petroleum products.The state government, at present, collects an additional Rs 4 per litre over the 31 per cent and 22.25 per cent VAT levied on petrol and diesel respectively.
Petroleum Dealers Association State president R Gopalakrishna told TNIE that the government wasn’t budging despite repeated appeals to decrease the price of fuel. “We are in the process of analysing data related to the dip in the sale of petroleum in the State. A memorandum will be submitted to the government in a day or two urging it to slash the price,’’ he said. The prices of diesel and petrol have risen by Rs 14.60 and Rs 12.40 per litre after the introduction of dynamic pricing in June, 2017. “The price of fuel has been rising steadily, but there has been no effort on the government’s part to reduce the burden on consumers,” he said and argued that fuel stations located along the State’s borders were suffering huge losses as truckers were filling their tanks at bunks in neighbouring States where the fuel price is less.