Telangana not to reduce VAT on petrol and diesel

KCR asks Centre to withdraw cess on fuel, which will automatically bring down their prices

Chief Minister K. Chandrasekhar Rao has ruled out reduction of Value Added Tax (VAT) on petrol and diesel to offset spiralling fuel prices as the TRS government had not increased even a rupee on the State tax since the formation of Telangana seven years ago.

Addressing a press conference on Sunday, Mr. Rao demanded that the Centre withdraw cess on petrol and fuel, which will automatically bring down their prices. He blamed the Centre for not increasing tax on fuel and instead imposing cess, so that it can be absolved of the responsibility of sharing revenue from tax with State governments. However, he was not in favour of reversing the step at this stage as he wanted all duties on fuel to be brought down.

Mr. Rao said the Centre had spread falsehood that the hike in fuel prices was on account of increase in crude oil. But, the fact was that the crude oil cost US $ 105.52 a barrel in 2014, and now, it was US $ 83. The price had even crashed to US $ 30 at times. On refusal of Food Corporation of India (FCI) to lift paddy stocks from Telangana, he threatened that his entire Cabinet, including himself, would stage a dharna in New Delhi if the FCI stuck to its guns. If the FCI could procure entire quantity of foodgrains from Punjab, why not Telangana?.