Fuel: Rs 4 VAT hike awaits Andhra Pradesh nod

Hyderabad: AP finance minister Yanamala Ramakrishnudu said finance department had sent two proposals to the Chief minister The two proposals that are awaiting approval are seeking a Rs 4 hike in VAT and another seeking a Rs 2 increase. If the VAT had been increased by Rs 2 a litre, the state would have earned Rs 80 crore.

Following the unprecedented fall in international crude oil prices, resulting in a drastic reduction of petrol and diesel prices in the country, the state government has lost '400 crore in the last 10 months. To recover the money, the Centre increased Excise duty in four phases. All state governments have hiked VAT on the fuels by Rs 2 per litre. Following a further reduction in petrol prices earlier this week, the AP finance department decided to hike the tax.