Chandrababu Naidu slashes VAT on petrol and diesel in AP
Amid Bharat Bandh being observed across the nation to protest against escalating fuel prices, Andhra Pradesh CM Chandrababu Naidu has announced a reduction in VAT on petrol and diesel by Rs. 2 per liter. The announcement was made in the State Assembly, following a high-level meeting in the wake of the Bharat Bandh, which was supported by the TDP. Here are the details.
VAT on petrol, diesel in AP is among the highest
After Maharashtra and Madhya Pradesh, Andhra Pradesh has the highest amount of VAT on petrol, at 35.77%. In terms of VAT on diesel, Andhra Pradesh levies the most taxes in India, charging 28.08% VAT.
Citing data, Naidu accuses the NDA govt. of misleading people
Chandrababu Naidu and the Telugu Desam Party (TDP) had, until recently, been part of the NDA government. However, Naidu has now accused the NDA government of misleading the people by attributing the escalating petrol and diesel prices to growing global crude oil prices. Citing data, Naidu said that despite fluctuations in global prices, the NDA government had consistently hiked petrol and diesel prices.
Citing global crude oil prices, Naidu accuses the NDA
"During 2013-14, the crude oil prices were $105.52/barrel. But when the price fell down to $46, too, the Centre did not reduce the prices. Now, crude oil costs $70 per barrel, but the Centre is increasing the petrol and diesel prices abnormally," explained Naidu.
Slashing VAT might give TDP tremendous political mileage
Explaining the decision to slash VAT on petrol and diesel in Andhra Pradesh, Naidu said that the decision was taken to alleviate the suffering of the people, whose anger Naidu said had culminated in the Bharat Bandh. The decision will cost the state Rs. 1,120cr, but might give the TDP immense political mileage in the upcoming 2019 elections.
