AP Government Hikes VAT on Cooking Gas:- The government of Andhra Pradesh shocked the people of the state after it hiked the Value Added Tax (VAT) on the cooking gas by 10 percent citing revenue loss because of the ongoing coronavirus pandemic. The VAT on cooking gas in the state is said to be 14.5 percent and it is now increased to 24.5 percent. The official orders are issued by the Commercial taxes special chief secretary Rajat Bhargav. Some of the items like crude oil, natural gas, diesel, petrol and aviation turbine fuel are under VAT purview. The government of Andhra Pradesh increased the tax on petrol last month to 31 percent and the VAT on diesel has been increased to 22.25 percent.

The revenues in Andhra Pradesh plunged down completely from March ever since the coronavirus pandemic attacked. The revenue was Rs 1323 crores in April this year while the revenue was Rs 4480 crores in April last year. With the revenues falling down, the state has been in the hunt to generate revenues after which the VAT on cooking gas has been increased. Opposition party TDP slammed the leading YSRCP government for the hike on the gas at this time when people are struggling to meet up their daily expenses. Nara Lokesh wanted the government to take the decision back.