Petrol VAT cut in ECs hands

HYDERABAD: The state government is contemplating reducing VAT (Value Added Tax) on the hiked portion of the petrol price by three per cent.With the election code in force in the state, chief minister N Kiran Kumar Reddy is understood to have asked the Commercial Taxes officials to take clearance from the Election Commission for the decision. If VAT is reduced by three percent, it would give people a relief of Rs 1.50 to Rs 1.80 per litre in the state.In Hyderabad, consumers had to pay Rs 81.42 after the latest hike.According to sources, the chief minister gave instructions to the commercial taxes department after Union finance minister Pranab Mukherjee wanted the state governments to soften the blow delivered on the consumers by the oil marketing companies.When contacted, Chief Electoral Officer Bhanwarlal said he was yet to receive any representation from the commercial taxes department.“They may have sent it to the Election Commission directly,” he said but made it clear that CEC clearance was required because the decision had the potential of influencing voters in favour of the ruling Congress.