Hyderabad, April 27
The Value Added Tax (VAT) on petrol in Telangana is 35.2 per cent while it is 27 per cent on diesel.
However, the state government has rejected demands to reduce VAT saying it did not hike the tax in last seven years.
The Telangana Rashtra Samithi (TRS) government has been demanding that the Central government should reduce the cesses which it increased indiscriminately since 2014. The state government says that this will reduce fuel price by 30 per cent.
After Prime Minister Narendra Modi on Wednesday asked opposition-ruled states to cut VAT, state minister and TRS Working {resident K. T. Rama Rao hit back, blaming Modi government for fuel price hike.
"Fuel prices have shot up because of NPA Central govt," he tweeted dubbing National Democratic Alliance (NDA) as Non-Performing Alliance (NPA).
"Name-calling states for not reducing VAT even though we never increased it; is this the co-operative federalism you're talking about Narendramodi ji," KTR asked.
He said that Telangana hasn't increased VAT on fuel since 2014 and rounded off only once.
"We don't get 41 per cent of our rightful share because of the Cess imposed by your govt. In the form of Cess you are looting 11.4 per cent from the state & we are getting only 29.6 per cent for FY23," he said.
"Please scrap Cess so we can give Petrol at Rs 70 & Diesel at Rs 60 all over India. One Nation – One Price?," he added.
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