Andhra Prades

Tax rates on petrol and diesel increased in State

Revenues hit due to pandemic: govt.

The State government has decided to revert to the tax regime of petrol and diesel that prevailed from 2015 to 2018 to partially offset the loss of revenue caused by the COVID-19 crisis.

In a G.O. (MS No. 204) issued by Special Chief Secretary (revenue) Rajat Bhargava, it was stated that while the overall rates will not exceed those that existed between 2015 and 2018, the revised rates for petrol and diesel are 31% + ₹4 per litre (31% + ₹2.76 per litre earlier) and 22.25% + ₹4 per litre (previous one: 22.25% + ₹3.07 per litre) respectively.

The government will be making amendments to that effect to Schedule - VI of the Value Added Tax Act of 2005. As per the G.O., the State’s revenues have dried up due to the lockdown.

The revenue collection in April 2020 was ₹1,323 crore compared to ₹4,480 crore in the corresponding month last year (2019).

Similar trends were witnessed in May and June as the pandemic dealt a severe blow to the economy.

Several States, including Karnataka, Uttar Pradesh, Rajasthan and West Bengal and New Delhi, have made an upward revision of the taxes on petrol and diesel in April and May to compensate the revenue loss to some extent.

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