Telangana Govt Not Ready to Reduce VAT on Fuel ?

Hyderabad: Though the Union Government has reduced the excise duty on petrol and diesel which has given some relief to the people of the Telangana State and many other States followed the Centre and gave some more relief to the common man, but in the case of Telangana no such measures has been taken by the State government so far and the State Commercial Taxes department did not receive any proposal on VAT from the Chief Minister’s Office.

Presently the State is collecting 35.2 per cent VAT on Petrol (for every litre of petrol purchased by the common man they have to pay above Rs. 34 to the State government), similarly on diesel the state is collecting 25 per cent in terms of money, it is more than Rs. 24 per litre which goes in the pocket of State government. The sale of petrol was around 40 lakh litres and diesel was 35 lakh per day from 800 fuel outlets in the State. The government earns nearly Rs. 900 crore per month from VAT on fuel. The State has targeted to increase the revenues through VAT this financial year. 

According to the official sources, the government is unlikely to reduce VAT in the wake of increased financial requirements of the government which includes payment of increased salaries to the government employees as per the new PRC, disbursement of Aasara pension to nearly 35 lakh beneficiaries, Rythu Bandhu and the recently launched Dalit Bandhu scheme.

The officials claimed that the VAT on fuel was increased in 2015. Since then, the tax structure remained the same. In the present circumstances, reducing the VAT was ruled out.

The States that have so far not lowered VAT includes Congress and its allies ruled States such as Rajasthan, Punjab, Chhattisgarh, Maharashtra, Jharkhan and Tamil Nadu, AAP ruled Delhi, TMC governed West Bengal, Left ruled Kerala, TRS led Telangana and YSR Congress ruled Andhra Pradesh.