Andhra Pradesh hikes VAT on diesel, petrol to overcome financial stress
As per a new order issued on Monday, amending the VAT Act, the state tax on petrol is increased by Rs 1.24 and on diesel by 93 paise
Amaravati (Andhra Pradesh): The YS Jagan Mohan Reddy government, which has been claiming credit for implementing welfare schemes despite financial stress, has hiked the value added tax on petrol and diesel. The government said its own resources had dried up and hence, the hike in VAT on fuel.
As per a new order issued on Monday, amending the VAT Act, the state tax on petrol is increased by Rs 1.24 and on diesel by 93 paise.
The new tax on petrol is 31 per cent plus Rs 4 and on diesel is 22.25 per cent plus Rs 4.
The revenue department, in the order, said that the state’s own revenues had fallen down since March because of the lockdown announced by the Centre. In March, the revenue was down by Rs 4,480 crore. It continued to be the same in the subsequent months. On the other hand, the state has got additional burden on account of the Covid-19 pandemic.
The CM has been rolling out new welfare schemes covering various social sections over the last few months. The government is also giving Rs 2,000 cash assistance to every Covid-19 patient at the time of discharge from the hospital. The state claims to be spending Rs 500 on each person during the treatment.