PM Modi flags higher fuel price in Opposition-ruled States, seeks reduction in VAT
PM Modi flags higher fuel price in Opposition-ruled States, seeks reduction in VAT
Some States did not pass on the benefits of reduction of the excise duty on petrol and diesel by the Central government leading to higher cost of petrol and diesel there. “These States should bring in immediate remedial measures to stop this injustice,’’ said Prime Minister Narendra Modi on Wednesday.
He appealed to States to ensure Centre–State cooperation stating that this is the need of the hour because of the war situation when the global community is under stress and is facing challenges caused by disruption in the supply chain and rising cases of COVID–19 again.
At an interaction with Chief Ministers on the emerging Covid-19 situation, the Prime Minister said along with the pandemic challenges, the global community and the common man are facing the fall out of a war.
Prime Minister Narendra Modi on April 27, 2022 addresses a virtual meeting with Chief Ministers regarding the COVID-19 situation. Photo: YouTube/Narendra Modi via PTI
“The situation of war which has arisen has affected the supply chain and in such an environment, the challenges are increasing day by day,” said Modi in an apparent reference to the Russia–Ukraine conflict.
“India fought a long fight against corona with the spirit of cooperative federalism. In the current global scenario, for the strength of India’s economy, coordination between the Central and State governments in economic decisions is necessary. In the conditions imposed by global events, this spirit of cooperative federalism becomes all the more important,’’ he said in the context of petrol and diesel prices.
The Prime Minister said to reduce the load of both prices, the Central government has reduced the excise duty and had requested the States also to do so. Some States reduced taxes but some did not pass on the benefits to the people, leading to higher fuel prices there.
“This is not only injustice towards the people of the State but harms the neighbouring States also. States like Karnataka and Gujarat undertook the tax reduction for the welfare of the people despite revenue loss while their neighbouring States earned revenue by not reducing tax.”
Similarly, the Prime Minister said that last November a request was made to reduce VAT but many States, most of which are non–BJP–ruled ones like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala and Jharkhand did not do so for some reason.
The Prime Minister said 42% of the revenue at the Centre goes to the State governments. “I urge all the States to work as a team in this time of global crisis following the spirit of cooperative federalism.”
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