New Delhi: Union Minister Hardeep Singh Puri has come down heavily on the Opposition-ruled states for indulging in politics and not slashing VAT on petrol and diesel to provide relief to the public.
"BJP ruled States have a VAT on petrol & diesel in the range of ₹14.50 to ₹17.50 /ltr, while taxes levied by states ruled by other parties are in the range of ₹26 to ₹32 /ltr. The difference is clear. Their intent is only to protest and criticise, not extend relief to the people," the Union minister said.
PM Modi on Wednesday had asked some states that did not reduce tax despite the Centre's excise cut on fuel last November to reduce their share of tax. However, Maharashtra Chief Minister Uddhav Thackeray and former Congress chief Rahul Gandhi said that the Centre should reduce excise duty, which has gone up since 2014.
"Today, in the price of one litre of diesel in Mumbai, ₹ 24.38 is for the Centre and ₹ 22.37 is for the state. In petrol price, Rs 31.58 is central tax and Rs 32.55 state tax. Therefore, it is not a fact that petrol and diesel have become more expensive due to the state," Thackeray said.
Thackeray said Maharashtra raised the highest GST (Goods and Services Tax) of 15 per cent in the country. Combining both direct taxes and GST, Maharashtra is the number one state in the country," he said.
Today, Gandhi said 68% of all fuel taxes were taken by the Centre. "Yet, the PM abdicates responsibility. Modi's federalism is not cooperative. It's coercive," he wrote on Twitter.
Stung by Prime Minister Narendra Modi's put-down on live telecast yesterday, Telangana Chief Minister K Chandrasekhara Rao has remarked that the Prime Minister "should feel ashamed" to ask states to cut taxes and stressed that there had been no hike in fuel tax since 2015 in his state.
"Why can't the Centre cut taxes instead of asking states? The Centre has not only enhanced taxes, but it also collects cess. If you have the guts, explain the enhanced taxes," Mr Rao, popularly known as KCR, said.
KCR called it a conspiracy to financially weaken states vis-a-vis the Centre, "so that we have to stand with a begging bowl before them".