Hyderabad: Value added taxation on transport of petrol and diesel has stunned tanker owners. Telangana government had issued orders on May 9 for the levy of 14.5 per cent VAT on transportation charges. But the furious 3,000-odd tanker owners in the city said VAT on transportation charges is not being collected anywhere in the country and have now asked the state government to withdraw it. They have also threatened to stop supply of petrol and diesel to petrol bunks and LPG cylinders to gas distribution agencies in the city, and all over Telangana State from the midnight of May 29.
“We will stop fuel and gas supplies. Petrol bunks in the city and state will go dry and even LPG cylinder transportation will also be stopped. We have met officials from the tax department but have not received any assurance. So we have no choice but to go on an indefinite strike,” Telangana petroleum tank trucks owners associations president K. Rajashekhar Reddy said. In Telangana state’s 10 districts, a total of 1.13 lakh kilolitres of petrol is consumed every month and over 2.65 lakh kilolitres of diesel per month (each kilolitre is 1,000 litres). Over 2.50 lakh LPG cylinders are also supplied per day.
“The 14.5 per cent VAT on transportation charges has been levied without consulting any of the tanker associations. This type of VAT of five per cent was proposed even during Y.S. Rajasekhar Reddy’s government in 2005 but he had set it aside association general secretary Syed Arif Ul Hasan said. We are already paying Rs 5,750 tax every quarter on each vehicle to the Transport department. This tax was fixed for 23 districts in undivided AP and has remained same even after formation of Telangana State which has only 10 districts. We cannot afford to pay 14.5 per cent VAT on transportation charges,” association general secretary Syed Arif Ul Hasan said.
When contacted, officials of IOC, HPCL and BPC said oil companies do not have tankers of their own and that private tankers attached with the companies transport petrol, diesel and gas cylinders on payment of transportation charges.
Infographics:
Oil companies pay Rs 1200 for below 70-km trip of tanker with 12 KL fuel within the city
It is Rs 2200 for tanker with 20 KL fuel capacity.
Filling plants of oil companies are located at Cherlapalli. Ghatkesar (both Hyderabad), Suryapet (Nalgonda distict), Ramagundam (Karimnagar district) and Warangal.
25500 kilolitres of petrol is consumed per month in Hyderabad district.
21610 kilolitres of diesel per month in Hyderabad district.
Ranga Reddy district: 32,250 KL petrol per month
RR district: 72,880 KL diesel per month.
Telangana State: 1.13 lakh KL petrol per month
2.65 lakh KL diesel per month.
