Pressure on Andhra govt to slash VAT on fuel as opposition parties up ante

VIJAYAWADA: The State government is yet to make a decision on reducing value-added tax (VAT) on fuel even as the TDP and BJP are demanding it to lessen the burden on the common man. Most BJP-ruled States have slashed VAT after the Central government on Wednesday had cut excise duty by Rs 5 on a litre of petrol and Rs 10 on diesel. 

Official sources told TNIE it was unlikely for Andhra Pradesh to slash VAT considering the State’s precarious financial condition. Responding to the opposition demand, Deputy Chief Minister (revenue) Dharmana Krishna Das, on the other hand, said the government would make an appropriate decision at an appropriate time. 

The sources, however, remained sceptical. “The cash-starved State government is unlikely to take an immediate call on the issue,’’ they insisted.Andhra Pradesh has 31 per cent VAT and Rs 4 additional VAT per litre of petrol, besides collecting Rs 1 as road development cess. Diesel price in the State includes 22.25 per cent VAT, Rs 4 additional VAT and a road development cess of Rs 1. 

Turning up the heat on the YS Jagan Mohan Reddy government, TDP chief and opposition leader N Chandrababu Naidu demanded that the Chief Minister fulfil his poll promise of making the fuel prices in Andhra the lowest in the country. Playing videos of Jagan’s election campaign in which he had made the promise, Naidu, addressing a news conference on Saturday, urged the government to slash petrol and diesel rates by Rs 16 and Rs 17 per litre to make it the lowest. 

The opposition leader said the TDP would continue its fight until the State government reduced the fuel prices. Naidu announced that his party would organise protests at all fuel-filling stations across the State on November 9 demanding reduction in VAT on fuel.He said the party cadre would hold an hour-long dharna on Tuesday from 12 noon. Naidu added that the TDP would highlight the problems caused to the people by high fuel prices, bad roads and lack of road safety. 

Naidu demanded to known why Jagan was silent and not slashing the rates like other States. He said the fuel rates in Andhra were higher by Rs 16.75 for petrol and Rs 16.10 for diesel compared to Chandigarh, and more by Rs 15.70 on petrol and Rs 10.20 on diesel than the price in Lucknow. Jagan owed an explanation to the public, he said.  The Centre reduced fuel prices by Rs 5 on petrol and Rs 10 on diesel.Later, all other States positively responded by cutting rates from their share to offer relief to the people, he pointed out

The BJP, meanwhile, held protests at all the district collectorates demanding a reduction in VAT on petrol and diesel. The party’s state chief Somu Veerraju said in Rajamahendravaram that several States across the country have been reducing VAT on fuel following the Centre’s call. 

“The Jagan government had been blaming the Centre for spiralling fuel prices. But when the latter provided relief in the form of excise duty cut, why is the state not following suit,’’ Veerraju asked. Speaking to reporters in Srikakulam, Krishna Das welcomed the decision of the Centre to reduce the fuel prices. He added that the State Government would make a decision on petrol and diesel prices to benefit the people more.