AP Govt mulls VAT cut on petro prices

Hyderabad, Jun 5 (UNI) Acting on AICC President Sonia Gandhi's direction to all Congress-ruled states to reduce Sales Tax on petro products, the Andhra Pradesh Government is mulling reducing Value Added Tax (VAT) on petroleum products to neutralise the hike in the prices of petrol and diesel.

According to official sources here, the government has taken the fuel price hike issue seriously as the common man's budget would be badly affected.

Top officials concerned were discussing the issue of VAT reduction on petro products.

Commercial Taxes Minister K Ramakrishna had already brought the issue to the notice of Chief Minister Y S Rajasekhara Reddy before leaving for Guntur for an official programme.

Meanwhile, State Finance Minister K Rosaiah told newspersons the State Cabinet would have to first approve the reduction in VAT.

''The hike in fuel prices will affect the common man badly.

People will face problems if the present hike in fuel prices is not controlled,'' he said.

The government was levying 33 per cent VAT on petrol, the highest in the country and 22.25 per cent on diesel, the second highest after Gujarat.

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