People Who Voted For Their State Govts Should Ask To Reduce Tax On Fuel: Sitharaman

Mumbai: Finance Minister Nirmala Sitharaman has said that it is for the citizens who voted for their respective state governments to ask why they have still not reduced the VAT on petrol and diesel after the Centre reduced the excise duty.

“Petrol and Diesel can’t be included in Goods and Services Tax (GST) till the GST Council sets the rate for their inclusion,” the Finance Minister added while addressing the media after her interaction with Chief Ministers and Finance Ministers of all states, as per NDTV.

The meeting was held in view of the “improving investment climate in the country” in the wake of “strong reforms” and “opportunities arising out of changes in geopolitical realities after the pandemic”.

On the eve of Diwali on November 7, the Finance Ministry along with 17 National Democratic Alliance-led states including Gujarat, Uttar Pradesh, Karnataka, Haryana cut excise duty on petrol by Rs 5 and excise duty on diesel by Rs 10. State tax on petrol and diesel.

While many states had reduced VAT to bring down fuel prices, some states had asked the Center to further reduce the excise duty.

The Finance Minister of Kerala had termed this move of the central government as ‘damage control’. Rising fuel cost was one of the main reasons behind the BJP’s defeat in several seats in the recent by-elections.

According to opposition parties, the Modi government had significantly hiked the excise duty in the past but only marginally reduced it.

The parties claim the state governments never increased the VAT, so there was no question of reducing it and added that the prices would automatically decrease once the union government reversed its excise duty hikes.

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