7 states yet to slash VAT on petrol, diesel despite Centre’s excise cut

Prime Minister Narendra Modi on Wednesday asked seven states to cut VAT on petrol and diesel to provide relief to people. He said the Centre in November last year had slashed excise duty on fuel and asked the states to also cut VAT.
Some states, he added, went ahead and slashed the taxes but some are yet to cut VAT. “I am not criticizing anyone but request Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu to reduce VAT now and give benefits to people,” he said while interacting with Chief Ministers.
The Opposition parties have been targeting the Centre for high fuel prices, which have crossed the Rs 100-mark in almost all states.

7 states yet to slash VAT on petrol, diesel

The Centre had in November last year announced a reduction of excise duty on petrol by Rs 5, on diesel by Rs 10. It asked the states to also slash VAT on fuel. While some BJP-ruled states announced the tax cut, some states are yet to do so fearing revenue shortage.
Today, the prime minister named these states and asked them to cut VAT to provide relief to consumers.
“Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand, Tamil Nadu, for one reason or the other, did not listen to the words of the central government and the citizens of those states continued to be burdened,” he said.
“What was to be done in last November, you should by reducing VAT pass on the benefit to the citizens,” he told the chief ministers.
However, Congress leader Pawan Khera targeted the Centre saying PM Modi earned Rs 26 lakh crore out of central excise on petrol and diesel but didn’t share it with states. “You didn’t give the GST share to the states on time & then you ask states to further reduce VAT. He should reduce central excise and then ask others to reduce VAT,” he said.

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