Trucks and other goods transport vehicles, which transport goods between states on national highways, avoid replenishing fuel within the state to avoid the additional VAT imposed by the state. (Representational image)
Vijayawada: The state government’s revenue has increased after completing a year of imposition of additional VAT of Rs 4 per liter on diesel in Andhra Pradesh at the cost of decreased sale volume of more than 6,08,816 kiloliters, the latest figures explains.
In fact, this Rs 4 is additional VAT on the already imposed Rs 9 by the state government on diesel. If the state government reduces Rs 2 additional VAT on diesel, its revenue and sale volume of the product would increase, according to Andhra Pradesh Federation of Petroleum Traders.
There were problems with diesel sale but no problem with respect to petroleum sale, the trade body said. Trucks and other goods transport vehicles, which transport goods between states on national highways, avoid replenishing fuel within the state to avoid the additional VAT imposed by the state.
These vehicles often fill their tanks in the border districts of neighbouring states, immediately after crossing Andhra Pradesh, said Ravi Gopala Krishna, president of the Federation. Mr Krishna said districts such as Anantapur, Guntur, Krishna, Vizianagaram and Srikakulam are worst affected with this additional VAT.
Petrol bunk owners explained that the number of registrations of new vehicles in the state increased, but in contrast, volume sales of diesel has been decreasing because of the additional VAT.
In 2015 alone, from April to December, the number of motor vehicles registered in the state were 85,05,102 compared with 78,82,262 vehicles registered in 2014-15, in which more than 70 per cent are frun on diesel.
Meanwhile, the Federation members are planning to launch a strike again, which they organised last year, said Mr Krishna.