Centre Owes Maha ₹26,500 Cr, State Not Responsible For Fuel Price Hike: Uddhav Thackeray

Mumbai: Maharashtra CM Uddhav Thackeray said the Centre owes the state ₹26,500 crores after PM Narendra Modi stated some states did not reduce VAT on petrol and diesel despite the Union government’s excise duty cut.

Thackeray accused the Center of being step-motherly towards Maharashtra and said that the state government was not responsible for the increase in the prices of petrol and diesel. Also Read:Petrol Will Be Cheaper If States Cut Taxes On Fuel Instead Of Liquor: Petroleum Minister

During a virtual interaction with chief ministers on the emerging COVID-19 situation in the country, PM Modi on Wednesday said that some states have not reduced VAT on petrol and diesel and have done “injustice” despite the Center cutting excise duty by not taking the benefit of this step to the people.

Modi said the Center has urged states to reduce taxes and transfer benefits to citizens.

The PM said that many states like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu did not listen to the central government for one reason or the other and the citizens of those states continued to be burdened.

After the meeting, CM Thackeray’s office issued a statement here detailing the central and state government taxes levied on fuel – mainly petrol and diesel.

“The central government owes the Maharashtra government Rs 26,500 crore. Maharashtra’s contribution to direct tax collection at the national level is 38.3 per cent and its share in GST (collection) is 15 per cent, but the Center gives us step-motherly treatment,” Thackeray said in the statement.

“I am sharing the details with the public because of concern. Maharashtra receives 5.5 per cent of the total central taxes on various goods. If VAT and Central taxes are added, Maharashtra collects the highest amount in the country.

The Chief Minister said that despite being the top contributor, Maharashtra is neglected by the Central Government.

Thackeray also said that on each litre of diesel sold in Mumbai, the Centre gets Rs 24.38, while the state receives Rs 22.37. For a litre of petrol sold in Mumbai, the share is Rs 31.58 and Rs 32.55 respectively, he added.

The prices of petrol and diesel are not going up because of the state government, the CM said.

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