Taxpayers Association Urges Elimination of Extra VAT and Cess on Fuel in Andhra Pradesh

The Taxpayers’ Association in Vijayawada has called on the Andhra Pradesh government to eliminate the additional Value Added Tax (VAT) and road development cess on petrol and diesel, arguing that these taxes contribute significantly to rising fuel prices. Currently, petrol is subjected to a VAT of 31% and diesel to 22.5%, with additional surcharges increasing the overall financial burden on consumers. The association highlighted that removing these taxes could provide much-needed relief to citizens grappling with escalating fuel costs.

Members of the association revealed that the taxation on fuel generates approximately ₹25,000 crore for the state’s treasury, illustrating the substantial financial benefit the government reaps from these levies. However, they assert that the burden on the average citizen must be considered, as the cumulative impact of these taxes makes fuel unaffordable for many. The association has formally requested action from Chief Minister N. Chandrababu Naidu, Finance Minister Payyavula Keshav, and Chief Secretary G. Sai Prasad, advocating for a reevaluation of the current tax structure.

According to the association’s president V. Sambireddy and secretary M.V. Anjaneyulu, the total revenue from fuel taxes contributes ₹7.57 lakh crore to the Central and State governments’ finances. This statistic reinforces the argument that while taxes are crucial for government revenue, a balance must be struck to ensure that essential commodities like fuel remain accessible and affordable for all citizens. The association believes that scrapping these additional taxes would be a step towards that balance.