Following Rajasthan suite, Andhra Pradesh announces Rs. 2 cut in VAT on petrol and diesel

Amravati, September 11: Following footsteps of Rajasthan, it’s the state of Andhra Pradesh government on Monday announced a Rs 2 cut in a VAT on petrol and diesel to check the mounting prices of these fuels even as domestic fuel prices rose to new record highs.

Chief Minister N Chandrababu Naidu announced the reduction in Value Added Tax in the state assembly. He said the state government was currently levying Rs 4 per liter VAT on petrol and diesel.

The Chief Minister said, “The central government has been imposing a heavy burden on people by steeply increasing the prices of petrol and diesel despite heavy income in the form of various levies and dividends. Though the state is faced with a deficit budget, we have decided to reduce the tax and ease the burden on people.”

The state would have to forego revenue of Rs 1,120 crore due to the measure. A day before the opposition-sponsored Bharat Bandh against rising fuel prices, poll-bound Rajasthan had on Sunday slashed the VAT on petrol and diesel.

Chief Minister Vasundhara Raje announced a 4 percent reduction which brought the prices of the two commodities down by Rs 2.5 per liter.

Meanwhile, petrol in Delhi rose by 23 paise to Rs 80.73 per litre, while it rose by 22 paise, 25 paise and 23 paise in Kolkata, Chennai and Mumbai to Rs 83.61, Rs 83.91 and Rs 88.12 a litre respectively, as per the Indian Oil Corporation (IOC) website.

Similarly, diesel price rose by 22 paise in Delhi and Kolkata to Rs 72.61 and Rs 75.46 per litre respectively, while it rose by 23 paise a litre to Rs 76.75 and Rs 77.09 per litre in Chennai and Mumbai respectively. Extra premium petrol is selling at Rs 90.87 in Mumbai.