Hyderabad: The Telangana government has increased the Value Added Tax (VAT) on petrol and diesel by 4 to 5 per cent. As per the GO issued on Thursday, the VAT on petrol now stands at 35.2 per cent instead of 31 per cent. Similarly, VAT on diesel now stands at 27 per cent instead of 22.25 per cent.

Interestingly, the government had in January issued a GO Ms No 3 which said VAT on petrol would be 31 per cent and an additional charge of Rs 2 per litre would be imposed on petrol and diesel. But the new GO is silent on additional charge of Rs 2 per litre petrol and diesel.

Commissioner of Commercial Taxes V Anil Kumar clarified that the additional VAT is in lieu of Rs 2 additional charge. Therefore, the additional charge stands withdrawn. In effect, there will not be any increase in the prices of petrol and diesel for consumers. However, the GO needs to be corrected. The Commissioner said the department would issue a clarification in this regard.