States rush to slash VAT on petrol, diesel

A pump attendant fills fuel in a car in Delhi last month. Pic/AFP

Within hours of the Centre slashing excise duty on petrol by Rs 5 a litre and that on diesel by Rs 10 per litre, BJP-ruled states rushed to make similar announcements. The Congress called it a byproduct of bypolls, referring to setbacks to the saffron parties in some key seats.

The Centre's decision ensured that petrol price was cut in the range of Rs 5.7 to Rs 6.35 per litre across the country and diesel rates by Rs 11.16 to Rs 12.88.

Puducherry saw an additional Rs 7 a litre reduction in both petrol and diesel price because of the cut in value added tax (VAT). Gujarat had an additional reduction of Rs 5.65 a litre on petrol and Rs 4.32 on diesel. Uttar Pradesh, Karnataka, Tripura and Bihar too have announced VAT reductions.

Petrol had crossed Rs 110, while diesel hit a century in many areas, triggering widespread anger. VAT rates differ from state to state, leading to differential rates of fuel.

The excise duty cut announced on Wednesday night was the highest-ever reduction in excise duty. It rolls back a part of the Rs 13 and Rs 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020. These hikes had taken central taxes on petrol to Rs 32.9 per litre and Rs 31.8 a litre on diesel.

Congress ridicules BJP

Senior Congress leader P Chidambaram said the price cut is a fallout of the BJP's performance in recent bypolls. "The results of the 30 Assembly and 3 LS by-elections have produced a by-product. The centre has cut excise duties on petrol and diesel!" he tweeted.

His party colleague Priyanka Gandhi said the Centre was scared of people's anger. "This is a decision out of fear, not from the heart. The vasooli government will get an answer for its loot in the coming elections," she tweeted in Hindi.

Let opposition-ruled states slash VAT: Giriraj Singh

Union minister Giriraj Singh said it was time for action on the part of the opposition-ruled states. "Those who abuse PM Modi on Twitter and in the media, why have they not reduced VAT in their states? Today I thank Yogi Adityanath and Manohar Lal Khattar for reducing VAT. Is this opposition just for abusing?"

The minister further said that if the opposition-ruled state governments feel the pain, they should also reduce VAT in their respective states just like Yogi and Khattar did. Madhya Pradesh has also reduced the cess.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever