The Federation of Andhra Pradesh Industries (Fapi) has urged the state government not to collect value-added tax (VAT) on diesel.
Fapi president BV Rama Rao said here on Friday due to heavy power cuts, the industries in the state were incurring a loss of about Rs 400 crore per day. In view of this, most entrepreneurs were using diesel generators and the VAT on diesel was adding to the cost. The government collects 33 per cent VAT on diesel.
He said the government should also consider paying 25 per cent subsidy on purchase of up to 1,500 kv diesel generators. Fapi also requested the Centre for a one-year moratorium on payment of bank installments and interests.
The industry body is organising regional industrial conferences in September at Visakhapatnam, Hyderabad, Warangal and Tirupati to find out solutions and get suggestions to save the industrial sector from power cuts.
