Harish rules out cut in VAT on petro products

Hyderabad: Even as the Centre has asked the States to cut taxes on fuel to give respite to the citizens, the Telangana government on Sunday made it clear that it will not reduce VAT on petroleum products.

This was indicated by Finance Minister T Harish Rao in reply to a question asked during his visit to Gandhi Hospital on Sunday. He said that the Centre has increased the prices to a 'large extent and decreased by a small value'. "The Centre increased 'barana' and decreased 'charana', he quipped. Instead of asking the States to decrease the prices, the Centre should revert to those which were prevailing when the NDA came to power in 2014," said Rao.

"The Centre still collects Rs 16.40 as cess on petrol, it should decrease this first", he demanded. The minister also criticised the Centre for high LPG price. Rao said that the price of a cylinder when the NDA government came to power was Rs 400, but now it is Rs 1,050. The consumers used to get a subsidy of Rs 400, but it is down to Rs 40; this is also being removed.

"The Centre increased Rs 600 on gas and decreased it by just Rs 200 and that too for 25 per cent of people. "Now they are boasting on price reduction", observed Rao.

"Ask us after decreasing prices and cess which were prevailing in 2014; otherwise their suggestion is nothing but humbug and bogus. The State government has not increased the prices; hence there is no question of decreasing," he pointed out.