With the introduction of GST from June 1, 2017, all other taxes, including entry tax, stand abolished.
Hyderabad: The Telangana state government is yet to abolish the entry tax on petroleum and pass on the benefit to consumers as mandated under the new Goods & Services Tax.
The government in undivided Andhra Pradesh had enacted the AP Tax on Entry of Motor Vehicles into Local Areas Act, 1996, levying entry tax on goods into the state from other states. After bifurcation, the TS government adopted the same Act, with effect from June 2, 2014.
TS has the distinction of collecting the highest VAT on petrol at 35.2 per cent and on diesel at 27 per cent. This includes eight per cent entry tax.
With the introduction of GST from June 1, 2017, all other taxes, including entry tax, stand abolished. This benefit should be passed on to consumers.
However, the state government still treats entry tax as part of VAT and officials in the commercial taxes department claim to be unaware that entry tax is still being collected on petroleum products.
G. Vinay Kumar, a petroleum dealer in Shamirpet said, “After Karnataka abolished the entry tax, our petroleum dealers located in areas bordering Karnataka brought to our notice that they were suffering losses due to the lower petrol price in Karnataka.
“We brought this to the notice of officials who said entry tax is part of VAT. But how can entry tax be made part of VAT when it was abolished in GST? We request the TS government to abolish the entry tax and pass on GST benefit to consumers.”
When contacted, principal secretary, commercial taxes, Somesh Kumar said, “We are not aware of Karnataka abolishing entry tax after GST came into force on July 1 resulting in drop in fuel prices.”
