Rs100 Crore burden on public exchequer per month if government exempts Rs 2 VAT on petrol

Amaravati: There will be at least Rs 100 crore loss for public exchequer per month, if the State government reduces Rs 2 Value Added Tax on petrol and diesel, officials estimated.

The officials estimated that there will be nearly Rs 1200 crore per year, with this decision.

Despite of suffering with revenue deficit, initial hiccups in constructing Capital City, Polavaram and others, Chandrababu Naidu takes this daring decision, observed a senior leader in the party.

The Chief Minister Nara Chandrababu Naidu has decided to reduce the VAT on petrol and diesel today on the wake of nationwide bandh call given by Congress on Monday. The TDP also participating in the protests against Central Government, demanding reduction of prices.

The officials are preparing a detailed note on petrol and diesel prices to be discussed by Chandrababu Naidu in the Assembly today.

Though the Assembly is scheduled to be concluded by 2 pm, the House will continue till 6 pm.

There is short discussion on AP Reorganisation Act and then Chandrababu Naidu will give a detailed statement on petrol and diesel prices and the reasons behind steep hike.

On the other hand, Finance Minister Yanamala Ramakrishnudu will give the same statement in the Council.