Shortly after Prime Minister Narendra Modi on Wednesday asked Opposition-ruled states to reduce the Value Added Tax (VAT) on fuel "in the spirit of cooperative federalism", Maharashtra Chief Minister Uddhav Thackeray sought to blame the Centre for steep petrol, diesel prices.
Today, the diesel tax share on an ltr of diesel in Mumbai is Rs 24.38 for the Center & Rs 22.37 for the state. Petrol tax share is Rs 31.58 as central tax& Rs 32.55 as state tax. Therefore, it's not a fact that the prices have become more expensive due to state," a statement issued by Maharashtra CM Office said.
"To provide relief to the citizens of the state, the state govt has already given tax relief in respect of natural gas. To promote the use of natural gas, the rate of VAT on this gas has been reduced from 13.5% to 3%," it added.
A look at Maharashtra's petrol price per liter
- Basic Price: Rs 56.47
- Excise: Rs 27.90
- State VAT: Rs 32.15
- Dealer Commission: Rs 3.99
- Price customers pay: Rs 120.51
What PM Modi said on petrol, diesel prices
In a televised address after meeting with CMs over rising Covid cases in the country, PM Modi sought to blame the Opposition-ruled states for rising fuel prices.
The prime minister focussed a big part of his concluding remarks in his meeting with chief ministers to review the COVID-19 situation on the issue of fuel price, whose rise has been a matter of public debate and a cause behind the surge in inflation.
The prime minister 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 an "injustice" to people living there and also harmful for neighboring states.
States like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, and Kerala- all ruled by different opposition parties- have not reduced VAT for some reasons, and prices there are higher than in other states, PM Modi said.
In his remarks, PM Modi cited the example of Karnataka and Gujarat, both ruled by the BJP, saying they have suffered a revenue loss of nearly Rs 5,000 crore and Rs 3,500-4,000 crore respectively by reducing VAT but they did so to help people.
(With inputs from PTI)
Read More | 'Request Chief Ministers to reduce VAT': PM Modi flags high fuel prices in Opposition-ruled states
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