New Delhi: Prime Minister Narendra Modi on Wednesday asked seven states to cut VAT on petrol and diesel to provide relief to the people. He said the Center had reduced excise duty on fuel in November last year and asked states to cut VAT as well.
He said that some states have gone ahead and cut tax, but some states have not cut VAT yet. “I am not criticizing anyone, but I request Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu to reduce VAT and give benefits to the people,” he said while interacting with the chief ministers.
Opposition parties are targeting the Center for the high fuel prices, which have crossed the Rs 100 mark in almost all the states.
In November last year, the Center had announced a reduction in excise duty on petrol by Rs 5, on diesel by Rs 10. It had also asked states to announce reduction in VAT on fuel. While some BJP-ruled states announced tax cuts, some states have not cut VAT for fear of lack of revenue.
The Prime Minister today named these states and asked them to cut VAT to give relief to the consumers. “Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand, Tamil Nadu did not listen to the central government for one reason or the other and the citizens of those states remain a burden.
“What had to be done last November, you should have benefited the citizens by reducing VAT,” he told the chief ministers.
However, Congress leader Pawan Khera hit out at the Centre, saying that PM Modi earned Rs 26 lakh crore from central excise duty on petrol and diesel, but did not share it with the states.
“You didn’t give the GST share to the states on time and then you ask the states to reduce VAT further. They should reduce the central excise duty and then ask others to reduce VAT,” he said.
first published:April 27, 2022, 2:45 p.m.
