Andhra Pradesh govt enhances tax on natural gas by 10 percent
Citing the fall in revenues due to the COVID-19 induced lockdown, the Andhra Pradesh government on Saturday enhanced the tax rate on natural gas by 10 per cent, estimating that it could fetch an additional revenue of about Rs 300 crore per annum. Less than a month ago, the government revised the tax structure on petrol and diesel to earn an additional Rs 600 crore per annum.
Special Chief Secretary (Revenue) Rajat Bhargava issued a notification enhancing the tax on natural gas from 14.5 per cent to 24.5 per cent under Schedule-V of the AP Value Added Tax Act. "Presently, only natural gas is left to be taxed under Schedule-V of the APVAT Act after subsuming all other goods in GST," he said.
"Considering the fact that the revenues of the state are plummeting on one hand and the requirement for finances to implement the pro-poor schemes is escalating on the other, it has become imperative to augment the revenues," Rajat Bhargava said. The Special Chief Secretary said the government took all factors into consideration and decided to increase the tax rate on natural gas. The hike would come into force with immediate effect.
The Economic Times 13-09-2020