Telangana people got an ultimate shock from KCR for the very first time. The state government on Thursday increased the VAT on petrol from the existing 31 per cent to 35.20 per cent and on diesel VAT has been increased from the present 22.25 per cent to 27 per cent.
Continuous decrease in prices of petrol and diesel is causing worry to the state government. So in order to keep its tax revenue intact, the state government has decided to increase VAT on petrol and diesel.
But, an order issued to this effect states that it was an ‘errata’ to another order issued on January 16, 2015 increasing the VAT on petrol and diesel.
In the orders issued in January, the state government stated that the VAT on petrol should be 31 per cent plus ` 2 per litre. The VAT on diesel will be 22.25 per cent plus `2 per litre. But, the tax structure was revised upwards through the errata on Thursday, which fetches good revenue for the government.