New Delhi: Prime Minister Narendra Modi on Wednesday urged the Opposition-ruled states to reduce the Value Added Tax (VAT) on petrol and diesel in "national interest" to benefit the common man and work in the spirit of cooperative federalism in this time of global crisis.
In the meeting that was called to review the Covid-19 situation in the country, PM Modi raised the issue of many states not adhering to the Centre’s call to reduce VAT on petrol and diesel after it slashed the excise duty in November last year. He added that it is an "injustice" to people living there and also harmful to neighbouring states. News agency PTI reported.
“In order to reduce the burden of rising petrol and diesel prices, the central government reduced the excise duty last November. We had urged the states too to reduce their taxes. Some states reduced the tax and provided benefits to the consumers but some didn't do so,” he was quoted as saying by the news agency ANI.
In November last year, when the Centre reduced the excise duty on petrol and diesel by Rs 5 and Rs 10 respectively, which was followed by many of the BJP ruled states and some non-BJP ruled states as well by reducing VAT.
Naming the non-BJP states that did not reduce the VAT, PM Modi said, “Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand, and Tamil Nadu did not follow the advice of Central Government and people in these states are burdened with price rise."
“I request these states to do now what they should have done in November. By reducing the VAT you can lower the burden faced by the residents,” he further added.
“I am not criticising anyone but am praying to you for the welfare of people of your states...I urge you to reduce VAT now even after a delay of six months to benefit people," PM Modi said, PTI reported.
Meanwhile, Congress General Secretary, Randeep Surjewala took to Twitter to urge the PM to further reduce excise duty on petrol and diesel.
“Modi ji, No criticism, No distractions, No Jumlas! Excise Duty during Congress Petrol - ₹9.48/litre Diesel - ₹3.56/litre Modi Govt Petrol - ₹27.90/litre Diesel - ₹21.80/litre. Pl Roll Back the Excise Hike of ₹18.42 in Petrol & ₹18.24 per litre in Diesel,” Surjewala wrote on Twitter.
The opposition has been blaming the Centre for rise in fuel prices, while the Centre has cited the rise in crude oil prices in the international market