Andhra Pradesh enhances tax on natural gas by 10%

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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.

A month after revising the tax structure on petrol and diesel, the Andhra Pradesh government has enhanced the tax rate on natural gas by 10 per cent. The government expects to get an additional revenue of Rs.300 crores from the hike per annum.

The tax structure on petrol and diesel was revised last month to earn an additional Rs 600 crore per annum. The government has cited fall in revenues due to Covid-19 inducted lockdown for the additional tax burden.

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 (with inputs from PTI)

Image Credit: Times of India

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