Telangana government is mulling on the idea of slashing VAT on Petrol and diesel it imposed in last January. It was then fuel prices are on a downslide and the state government then increased its Tax percentages so that the state income will not suffer.
Now the fuel prices are once again registering Northward trend. So the state government is planning to decrease the VAT so that the common man is not burdened. The tax burden will be Rupees 2 or 4%. This move is also likely to push Andhra Pradesh to reduce tax on petrol and diesel.
In case AP does not decrease the Tax, the sale volume of petrol and diesel will go down as the vehicles in border districts will go to Telangana and fill their tanks denting the sale and tax revenues for the state. The dealers in AP are demanding reduction of the 8 per cent hike and are threatening to go on a strike if it does not happen.
