Maharashtra government has collected Rs 79,412 crore as fuel taxes since 2018 and is expected to collect 33,000 cr this year, said Hardeep Singh Puri
Union Minister Hardeep Singh Puri: ANI
New Delhi: Union Minister Hardeep Singh Puri on Thursday came down heavily on the Opposition-ruled states for not slashing VAT on petrol and diesel to provide relief to the public, and said that “petrol will be cheaper if opposition ruled states cut taxes on fuel instead of imported liquor.”
“The truth hurts, but facts speak for themselves. Maharashtra Govt has collected Rs 79,412 crore as fuel taxes since 2018 and is expected to collect 33,000 cr this year. (Adding up to a whopping Rs 1,12,757 cr). Why did it not reduce VAT on petrol and diesel to provide relief to people?” Puri, who is Minister for Petroleum and Natural Gas, wrote in a series of tweets.
“Petrol will be cheaper if opposition ruled states cut taxes on fuel instead of imported liquor! Maharashtra govt imposes Rs 32.15/ltr on petrol and Congress ruled Rajasthan Rs 29.10 But BJP ruled Uttarakhand levies only Rs 14.51 and Uttar Pradesh Rs 16.50. Protests cannot challenge facts! Truth hurts, but facts speak for themselves. 18% VAT on petrol & 16% on diesel in Haryana among lowest. An aspiring leader from the state protests against these, but is silent on Rajasthan ruled by his own party which imposes 31.08% +INR1500 /KL cess- among the highest in country!” he added.
He further claimed that BJP-ruled states have a VAT on petrol and diesel in the range of Rs 14.50 to Rs 17.50 per litre, while taxes levied by states ruled by other parties are in the range of Rs 26 to Rs 32 per litre. “The difference is clear. Their intent is only to protest and criticise, not extend relief to the people,” he wrote.
Earlier today, Maharashtra Deputy Chief Minister Ajit Pawar said that Prime Minsiter Narendra Modi has appealed to states to reduce tax on petrol and diesel, but imported oil is taxed first by Centre and then the states, so the Centre should also reduce tax.
Pawar said the state government did not increase any tax in the State budget this year. Maharashtra reduced tax on CNG due to which the state suffered a loss of Rs 1000 crores, he added. Pawar said that just like the Centre bought ‘one nation, one tax’ policy to promote the idea of Goods and Services Tax (GST), it should bring about the same change when it comes to levying taxes on petrol and diesel in the country.
“Firstly, it remains to be seen how much GST money will come from the Centre to the state. PM Modi appealed to States and UTs to reduce VAT on petrol and diesel. In response, I would say that the Maharashtra Government did not increase any tax in the budget this year,” Pawar said.
“We can discuss petrol-diesel prices in cabinet today. Maharashtra Chief Minister Uddhav Thackeray will tell us what happened in the meeting with PM Modi yesterday. Everyone in the country has to accept that the imported oil is taxed first by the Centre and then states, so the Centre should also reduce tax,” Pawar added.
On Wednesday, Modi held a COVID-19 review meeting with Chief Ministers of all States and Union Territories. West Bengal Chief Minister Mamata Banerjee, Delhi Chief Minister Arvind Kejriwal, Punjab Chief Minister Bhagwant Mann, Maharashtra Chief Minister Uddhav Thackeray, Chhattisgarh Chief Minister Bhupesh Baghel were amongst those present in the meeting.
In the meeting, the prime minister appealed to the States ruled by non-BJP parties to reduce tax on fuel. He said prices of fuel were higher in many opposition-ruled states and urged them to reduce Value Added Tax in “national interest” and as a part of “cooperative federalism” to benefit the common man.
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