Hyderabad, July 29: The Opposition parties including the TDP, TRS, BJP, CPI and the CPM today staged a walk out in the State Assembly today protesting against the Government’s refusal to reduce Vaue Added Tax (VAT) on petrol and diesel.
The walkout took place when the Government refused to reduce the VAT on petrol and diesel in the State, maintaining that it needs lot of funds for various welfare and development programmes.
The demand for reduction of VAT came in, during the Question Hour, when TDP member Gali Muddu Krishnama Naidu questioned the Government on the revenue accrued by the VAT on petroleum products.
He wanted to know from the Government how many times it had hiked the prices of petro products and what was the increase of VAT on it.
Replying to the query, Civil Supplies Minister Jupally Krishna Rao said that the total revenue accrued to the Government in the last five years was about Rs 6,692 crore and informed that the prices were hiked nine times.
He informed the House that the prevailing VAT on petrol was 33 percent and that on diesel was 22.5 percent.
The minister argued that compared to other states the VAT on diesel was low in the State.
Not convinced by the minister’s explanation, Leader of Opposition N Chandrababu Naidu alleged that the petrol price in the State capital was the highest when compared to other cities and questioned the rationality behind the reduction of VAT on the Aviation Turbine Fuel to 4 from 12.5 percent.
However the Government stuck to its guns and categorically stated that it will not reduce VAT.
With this the Opposition staged a walkout. Meanwhile, speaking in the House after the Opposition staged a walkout, Chief Minister Rajasekhara Reddy said VAT on Aviation Turbine Fuel was reduced as the airplanes were refuelling in other states. “We have reduced the VAT on the gas refill to 4 from 12.5 percent. We have absorbed the price rise on the gas totally,’’ the Chief Minister stated.
–Agencies–