According to sources the andhra pradesh government increased Value Added Tax (VAT) on petrol and diesel in the state from Thursday. Reportedly petrol and diesel rates in the state have gone up marginally following the decision to collect additional VAT on them. Meanwhile the decision, which announced through a government circular on wednesday, seems like a measure aimed at increasing state tax revenue.
Furthermore the jagan MOHAN REDDY' target='_blank' title='ys jagan mohan reddy-Latest Updates, Photos, Videos are a click away, CLICK NOW'>ys jagan mohan reddy government will now charge 35.20 per cent VAT on petrol. The VAT charged previously was 31 per cent + Rs 2. Similarly, VAT on diesel has been increased to 27 per cent from the previous 22.25 per cent + Rs 2. Apparently the Andhra government expects to earn an additional Rs 500 crore, the increased VAT resulted in an increase of Rs 0.50 to Rs 0.70 on petrol price and below Rs 1 on diesel price.
Moreover the fresh increase comes at a time when both Centre and states are struggling with tax revenue collections amid a prolonged slowdown. Hence this increase in VAT comes more than a year after the then chandrababu naidu government reduced VAT on petrol and diesel to the tune of Rs 2. At the time, petrol and diesel prices had jumped significantly due to an increase in global oil prices.
