PM Nrendra Modi Urges Several States To Cut VAT On Petrol And Diesel

Mumbai: PM Narendra Modi urged several states to cut VAT on petrol and diesel in the spirit of cooperative federalism.

PM Modi stated states like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala and Jharkhand didn’t cut VAT on petrol and diesel in November 2021 when the Centre had cut tax on fuel prices.

While the meeting was to take stock of the COVID-19 situation, PM Modi emphasized the need for Centre-State cooperation and said such cooperation is more needed in the current war situation when the country is facing several challenges due to disruption. doing. Work. facing. the supply chain.

Citing the example of petrol and diesel price, PM Modi said the Center waived off the fee last year to ease the burden of the people and then urged all the states to do the same so that the benefits can be transferred to the users.

“Some states followed it, but some states did not. In these states, petrol, and diesel are still expensive. It is in a way an injustice to the people of the state and is also harmful to the economy of other states.”

PM Modi said that the states which have reduced the tax could have earned more money like “Maharashtra, the neighbouring country of Gujarat” by not reducing the burden.

PM Modi said Gujarat could have earned ₹3,500 crore extra, PM Modi said he is not ‘criticizing’ but ‘appealing’ to the chief ministers of the state. On the other hand, neighbouring Gujarat and Karnataka earned somewhere between ₹3.500 crore to ₹5,000 crores in the last six months.

Naming Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Jharkhand and Kerala, PM Modi said these states have not reduced taxes for any reason.

“I am not even going to discuss how much revenue they have earned by not reducing the tax. I am just appealing to you to implement what should have been done six months ago. You are all aware that 42% of the Centre’s revenue goes to the state,” PM Modi said.

“Petrol is ₹111 per litre in Chennai, in Jaipur, it is over ₹118, in Hyderabad it is over ₹119, in Kolkata, it is over ₹115. In Mumbai, a litre of petrol costs over ₹120. But in Daman and Diu, a litre costs ₹102. While in Kolkata, it’s around ₹115, in Lucknow, it’s ₹105,” PM Modi said explaining what happened owing to states not reducing fuel taxes.

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