Monday, Sep 26, 2022

Fuel Prices | Some States Did Injustice By Not Reducing VAT When Centre Cut Excise Duty: PM Modi

PM Modi said that states may provide relief to people now by reducing taxes that they were supposed to do last November.

PM Narendra Modi PTI

Prime Minister Narendra Modi on Wednesday said that some states had done "injustice" to people when they did not reduce Value Added Tax on petrol and diesel when the Centre reduced excise duty last November.

Modi said that the Centre had urged the states to reduce their taxes but some states did not pass on the benefit to people.

He said, "Some states reduced taxes but some states did not give any benefit of this to the people. Due to this, the prices of petrol and diesel in these states continue to remain high. In a way, this is not only injustice to the people of these states but it also has an impact on neighbouring states."

Modi named Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu as states that did not cut taxes and said that citizens of those states continued to be burdened.

He added, "I request that what should have been done in November, you should pass on the benefit to the citizens by reducing VAT."

Modi raised the issue of fuel prices while speaking on cooperative federalism at an interaction with chief ministers on the emerging Covid-19 situation in the country. 

Referring to the ongoing conflict in Ukraine, Modi said there have been supply chain disruption and challenges are increasing everyday. He added that Centre-state coordination is important in this context.

Modi said, "This global crisis is bringing many challenges. In such a situation, it has become imperative to further enhance the spirit of cooperative federalism and coordination between the Centre and states.

(With PTI inputs)