Prime Minister Narendra Modi.
Highlights
- PM Modi asked Opposition ruled states to reduce VAT on fuel prices
- The Prime Minister made remarks in meeting with CMs
- The Prime Minister’s remarks faced a retort from CMs of Maharashtra and West Bengal
Prime Minister Narendra Modi in his interaction with chief ministers today flagged higher fuel prices in many opposition-ruled states. PM Modi urged them to reduce VAT in “national interest” to benefit the common man and work in the spirit of cooperative federalism in this time of global crisis.
Responding to PM Modi’s remark over fuel prices in opposition-ruled states in meeting with CMs, NCP leader and Maharashtra Minister Jitendra Awhad asked the Center to first pay back arrears worth Rs 26,000 crore to the state government and then they will take a decision.
‘Modi is the father of the country…’: Maharashtra Minister
Jitendra Awhad further said, “Modi is the father of the country, we Maharashtra, Bengal are his small children, the father should feed his children first. The states which reduced VAT did not make much difference, the price is less there by two or four rupees.” (Modi is the father of the country, we Maharashtra, Bengal are your small children, the father should feed his children first. The states which reduced VAT did not make much difference, the price of two or four rupees is less there)
Modi in meeting today raised the issue of many states not adhering to the Centre’s call for reducing the Value Added Tax (VAT) on petrol and diesel after his government slashed excise duties on them in November last, and called it “injustice” to people living there and also harmful for neighboring states.
Uddhav says Maharashtra has biggest contribution in country’s development
After Prime Minister’s remark on fuel prices asking Opposition ruled states to reduce VAT, Maharashtra Chief Minister Uddhav Thackeray issued a statement saying Maharashtra has the biggest contribution in the development of the country but the central government has been giving step-motherly treatment to the state in relation to economic matters.
Maharashtra gets 5.5 per cent of the Central tax. The share of Maharashtra in the total direct tax is 38.3 percent. Maharashtra collects the highest 15% GST in the country and is the number 1 state in the country in terms of both Direct Taxes and GST. Despite this, the state still owes about Rs 26,500 crore in GST.
The Chief Minister said that the Center is expected to treat all the states equally.
Uddhav clarified that Centre’s share is 24.38 percent and the state’s share is Rs 22.37 behind the price of one liter of diesel in Mumbai today.
The central tax on petrol is 31.58 paise and the state tax is 32.55 paise. Therefore, it is not true that petrol and diesel have become expensive because of the state, the Chief Minister said.
In order to give relief to citizens, the state government has already given tax relief in respect of natural gas. The rate of value added tax on gas has been reduced from 13.5 per cent to 3 per cent.
Maharashtra govt only made profits, says Devendra Fadnavis
Leader of Opposition Devendra Fadnavis said that it is easy to do blame game and hide misdeeds but it does not give relief to the common man.
When the Central government lowered the excise duty on fuel last November, it asked states to reduce taxes, but non-BJP ruled states, including Maharashtra, only made profits.
Amid this, sources say that the discussion on reducing VAT may come up in the cabinet meeting of Maharashtra government on Thursday.
Bengal CM Mamata Banerjee reacts
West Bengal Chief Minister Mamata Banerjee also issued statement after PM Modi’s remarks on fuel prices saying the discussion was one-sided and that she don’t agree with the Prime Minister.
“Today’s interaction with PM Narendra Modi was completely one-sided and misleading. Facts shared by him were wrong. We have been providing a subsidy of Re 1 on every liter of petrol and diesel for the last three years. We’ve spent Rs 1,500 crore on this,” Banerjee told reporters at the state secretariat.
She claimed there was no scope for the chief ministers to speak at the meeting and hence, they could not counter the prime minister’s statement.
“It would have been better had the PM not spoken on fuel price hike in a COVID-19 review meeting, it was his agenda,” she said, iterating her demand for a reduction in fuel prices.
Mamata Banerjee said that her government has spent Rs 1,500 crore in the last three years to subsidize petrol and diesel prices in the state.
,With inputs from PTI,
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