Hyderabad, Sep 11: Telangana's care-taker chief minister, K Chandrasekhar Rao is likely to reduce the tax imposed on diesel and petrol in a bid to lower prices. Before the move is implemented there is legal consultation on whether a care-taker government can take such a decision.
The government is citing the example of caretaker Prime Minister, Charan Singh, who had announced several measures including a reduction in fuel prices. The Governor in such cases can examine whether the caretaker government can take such a decision.
Rao held a meeting with finance officials and sought their views on the matter. He also tried to understand the impact on the exchequer if VAT on fuel was cut.
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Andhra Pradesh it may be recalled had announced a Rs 2 per litre cut on fuel prices. Rao was told that if the government followed the AP model, then it may result in a loss of Rs 300 crore per month. KCR is expected to hold more meetings today before a final decision is taken.
The decision would be crucial as elections are round the corner. If he fails to cut the prices then there could be considerable anger built up against him when the state goes to polls.