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KCR Facing VAT Side Effects

Telangana Government's plans to fund the welfare schemes through the revenue collected by imposing Additional VAT of Rs 2 per Litre on Diesel & Petrol backfired.

While the Government aimed at earning Rs 75 crore per month with VAT, It actually resulted in a loss of Rs 100 crore per month to state exchequer.

In fact, Petrol Bunks are mostly dependent on the revenue they earn on transport vehicles which contribute to 80 percent of their total business.

After the T-Government levied additional VAT, Vehicles crossing the borders have been preferring refuel in AP and Other Neighbouring States to save Rs 2.43 per litre. Even RTC has decided to use Andhra depots for fuel refill.
Petrol Bunk Owners say Telangana Government's VAT policy has a huge impact on their earnings as 30 percent of the business is dependent on vehicles from neighbouring states. KCR is now considering the rollback of VAT to rectify the blunder.

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