Andhra Pradesh hikes tax on petrol, diesel to clear up revenue

The Andhra Pradesh government on Monday revised the tax structure on petrol and diesel, thereby increasing their prices by Rs 1.24 and Rs 0.93 per litre respectively to mop up an additional revenue of about Rs 600 crore per annum.
The states own resources have totally dried up because of reduction in revenues on account of the (COVID-19-imposed) lockdown.
In April 2020, the state's own revenues realised were only Rs 1,323 crore as against Rs 4,480 crore in April 2019, which was just 29.5 per cent of the total expected revenue.
"Similar trends were observed in May and June as well, Special Chief Secretary (Revenue) Rajat Bhargava said in the order.
Under these circumstances and in order to overcome the financial crisis, the government after due consideration decided to revert to the earlier tax regime prevailing between 2015 and 2018.

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