Andhra Pradesh Government has levied Four Rupees Extra VAT on every liter of Petrol and Diesel last year but this hike is proving to counter-productive for the state exchequer. People in the border areas of Telangana and Karnataka are preferring to buy in those states.
An estimated 50 Crore liters of Diesel sales were lost due to this Four Rupees Hike. In the last two years, 180 bunks in the border districts have closed down due to the same reason. While the excess amount got 1244 Crore additional income, income lost on the lost sale of fuel is 1269 Crore
Karnataka is the biggest beneficiary of this. In Karnataka, Petrol is Five Rupees Cheaper and Diesel is Seven Rupees less than that of Andhra Pradesh. Andhra Pradesh Government should wake up to see the loss and make amends immediately.
