The Hikes Season is Here: After Electricity Charge hike, AP increases Taxes on Fuel

In another blow to the common man, the Andhra Pradesh government hiked tax on fuel prices citing resource crunch. Following a hike in electricity charges, the Y.S. Jaganmohan Reddy-led government increased taxes on petrol and diesel in the state. 
The revised tax structure on petrol and diesel will increase the prices by Rs 1.24 and Rs 0.93 per litre, respectively and is expected to mop up an additional revenue of about Rs. 600 crore per annum.
As per the new structure, issued vide a Government Order amending the provisions of Andhra Pradesh Value Added Tax Act, 2005, the revised rates for petrol and diesel will be 31 per cent (tax) plus Rs. 4 (additional levy) and 22.25 per cent plus Rs 4 per litre, respectively.
The state's own resources have totally dried up because of reduction in revenues on account of the (COVID-19-imposed) lockdown, the government claimed. In April 2020, the state’s revenues realised were only Rs. 1,323 crore as against Rs 4,480 crore in April 2019, which was just 29.5 per cent of the total expected revenue.
Under these circumstances and in order to overcome the financial crisis, the government after due consideration decided to revert to the earlier tax regime prevailing between 2015 and 2018. “We are ensuring that the overall rates do not exceed those prevailing between 2015 and 2018,” said Rajat Bhargava, Special Chief Secretary (Revenue). 
Going by this trend, looks like the state government will further burden the common man with additional charges. That makes us wonder about the promises that Y.S. Jaganmohan Reddy made at the time of taking oath as the Chief Minister about acing his game. Nevertheless, we believe this kind of additional burden on the common man will further increase the already existing adversity during a pandemic while the government, in contrast, needs to be considerate. 

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