Petroleum traders urge state to withdraw additional VAT, road cess on fuels

Vijayawada: Petroleum traders have urged the AP government to withdraw the additional VAT and road cess being levied on petrol and diesel in the state.

The state has been imposing additional value added tax of Rs 4 and a road cess of Rs 1 on petrol and diesel per litre. This formed into a burden of Rs 5 per litre on petrol and diesel purchases by motorists.

Motorists are already paying VAT of 22.25 per cent on a litre of diesel and 31 per cent on a litre of petrol. The additional VAT and road cess of Rs 5 will be unbearable for both commuters and transporters, the traders said.

Recalling the poll promise, the traders urged the state government to withdraw the additional VAT and road cess. “Once the cost of petrol and diesel comes down, it will have multiple benefits to motorists and transporters. This would help reduce the fare charged by auto rickshaws and buses, which are being used by students, office-goers and the general public.”

In addition to this, as the fuel cost comes down, the transport sector will get a relief and the prices of vegetables and other essential commodities may come down, they said.

Petroleum traders are planning to meet chief minister Chandrbabu Naidu to press the case. “We are hopeful of getting a positive response,” AP federation of petroleum traders general secretary Ravi Kumar said.

Petroleum traders welcomed the CM’s efforts to set up a BPCL refinery at a cost of nearly `60,000 crore in Machilipatnam and said that it would be having a huge potential for employment, help in the growth of allied sectors and generate revenue in the form of various taxes for the state.