Petrol Costliest In Telangana, Revanth Reddy Under Fire Over High Tax

With Petrol prices crossing Rs 117 in Hyderabad, opposition Bharatiya Rashtriya Samithi (BRS) has demanded a cut in the Value Added Tax on fuel.

Former Finance Minister and BRS Deputy Floor Leader T Harish Rao has written an open letter to Chief Minister Revanth Reddy demanding an immediate reduction in VAT on petrol and diesel in Telangana.

In his letter, the opposition leader said people in the state are facing a heavy financial burden due to continuous fuel price hikes and rising cost of living.

Harish Rao said Telangana imposes around 35.2% VAT on petrol and 27% on diesel, which are among the highest in India.

Harish Rao reminded that the Congress government had promised to reduce fuel prices before elections but failed to provide relief after coming to power. He said poor families, middle-class people, farmers, transport operators, traders and salaried employees are struggling because of rising petrol and diesel prices.

He alleged that the state government is earning huge revenue while people are suffering from inflation and rising household expenses.

According to his calculations, Telangana may receive nearly Rs 2,000 crore additional VAT revenue annually because VAT is charged as a percentage on fuel prices.

He also reminded the chief minister that during his time as Congress state President, Revanth Reddy had criticised the previous BRS government over high fuel taxes and promised relief to the public. However, after coming to power, the Congress government has not reduced VAT even slightly, he alleged.

Harish Rao demanded that the Telangana Government immediately reduce VAT on petrol and diesel by at least 10% to provide relief to the people.

A copy of the letter was also sent to Congress MP and Leader of Opposition in Lok Sabha Rahul Gandhi, requesting him to advise the Telangana Chief Minister to fulfil the Congress party's promises on reducing VAT on petrol and diesel.

Officials and industry representatives have also stated that Hyderabad residents are paying the highest fuel prices among major metro cities mainly because of Telangana's taxation structure.

After the recent fuel price hikes, petrol and diesel prices have gone up by nearly Rs 7.5 per litre within 11 days.

In Hyderabad, petrol price has now reached Rs 117.15 per litre while diesel costs Rs 103.82 per litre.