Andhra Pradesh to study feasibility to reduce VAT on fuel

Vijayawada: Finance minister Buggana Rajendranath Reddy said on Monday that the state government would take a decision on reducing value-added tax (VAT) on petrol and diesel after taking several issues into consideration.

The minister told media persons in New Delhi that VAT on fuel is one of major sources of income for the state and therefore the state government cannot follow the Centre on fuel prices  as it needs to examine various factors before taking a decision.

He also said that the expenditure patterns of the Centre and state government are different.

Rajendranath Reddy met Union finance minister Nirmala Sitharaman and ministers of state for finance Bhagwat Kishanrao Karad and Pankaj Chaudhary in New Delhi on Monday to discuss the second phase of arbitration on Anrak Aluminium Limited. The second phase of arbitration would be held in November.

The AP finance minister sought the release of funds from the Centre to take up several developmental works and also asked the Union finance minister to release AP’s share of funds and dues.