Union Minister Hardeep Singh Puri after Rajasthan, Maharashtra and Kerala cut VAT on petrol and diesel
Union Petroleum and Natural Gas Minister Hardeep Singh Puri has criticized non-BJP states Rajasthan, Maharashtra and Kerala for claiming responsibility for the measures taken by the Center after the states announced a reduction in VAT on fuel prices.
In a series of tweets, Mr Puri wrote: “Not entirely surprised to see senior leaders in Rajasthan, Maharashtra and Kerala claiming credit for the actions taken by the Center and trying to push through a proportional reduction in the VAT component due to a central excise reduction announced by FM, such as their own VAT reduction.”
He further stated: ‘Put simply, VAT is charged on the full sale price including central excise.’
“When reduced by Rs 8 on petrol and Rs 6 on diesel, the VAT component is reduced by a proportional amount of Rs 2.25 on petrol and Rs 1.17 on diesel, in the case of Rajasthan as it charges 31% VAT,” the union minister explained in a tweet further on.
He claimed that the VAT reduction had nothing to do with a decision made by the state government. “First they didn’t cut taxes in November, even like the BJP states did, and now they’ve gone further by claiming undue credit for the cut announced by the center,” he said. Mr. Puri.
Puri also said, “If the states undertake to relieve the citizens of their states who still pay Rs. 13-15/litre more than BJP-ruled states, they must reduce the VAT percentage.”
Not entirely surprised to see senior leaders in Rajasthan, Maharashtra and Kerala claiming credit for the measures taken by the Center and trying to push through a proportional reduction in the VAT component due to a reduction in the Central Excise announced by FM, as their own VAT reduction.
— Hardeep Singh Puri (@HardeepSPuri) May 23, 2022
The Center reduced excise duties on gasoline and diesel on Saturday. On Sunday, the government of Maharashtra led by Shiv Sena reduced the Value Added Tax (VAT) on a liter of petrol by Rs 2.08 and diesel by Rs 1.44, while the government of Rajasthan led by Congress reduced VAT by 2.48 rupees per liter on petrol and 1.16 rupees per litre. on diesel.
The Democratic Left Front government of Kerala was the first to quickly announce a cut in state tax on petrol and diesel prices of Rs 2.41 and Rs 1.36 per litre.
Sitharaman had said on Sunday that the reduction of Rs 8 per liter of excise duty on petrol and Rs 6 on diesel was carried out on roads and infrastructure levied on the two fuels, the collection of which has never been shared with the States.
The entire burden of these two fee reductions is borne by the Centre, she said.
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Posted: Monday, May 23, 2022, 4:33 PM IST
