PM Modi
'Injustice': PM Modi takes dig at opposition-ruled states for not reducing VAT on fuel
New Delhi/IBNS: Prime Minister Narendra Modi on Wednesday took a dig at the opposition-ruled states over the fuel price hike issue and urged them to reduce the Value Added Tax (VAT) on the same "in the spirit of cooperative federalism".
Interacting with the chief ministers on the Covid-19 situation, PM Modi said: "In order to reduce the load of petrol and diesel prices central government has reduced the excise duty and had requested the states also to reduce taxes. Some states reduced taxes but some states did not pass on the benefits to the people, leading to higher cost of petrol and diesel in these states."
"This is not only injustice towards the people of the state but harms the neighbouring states also," the PM said.
He said that states like Karnataka and Gujarat undertook the tax reduction for the welfare of the people despite "revenue loss while their neighbouring states earned revenue by not reducing tax".
Modi said that last November a request was made to reduce VAT but many states like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, Jharkhand did not do so for some reason.
The Prime Minister said 42 per cent of the revenue at the Centre goes to state governments.
“I urge all the states to work as a team in this time of global crisis following the spirit of cooperative federalism," Modi requested.
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