PM Modi calls out Maha for not reducing fuel tax; CM Uddhav Thackeray retorts

After Prime Minister Narendra Modis statement that the Centre has cut the excise duty on petrol and diesel but some states have not reduced value added tax keeping the price high Chief Minister Uddhav Thackeray has a counter statement that lists the Centres discrimination against Maharashtra in financial mattersPM Modi raised the issue in his virtual meeting with the CMs of states where Covid19 cases are on the rise He said certain states have ignored the Centrersquos appeal on reducing VAT on petrol and diesel since NovemberPM speakldquoThese states have not extended benefits to the people Also they have caused losses to the neighbouring statesrdquo he said giving examples of Karnataka and Gujarat who could have earned in the range of Rs 3500 to Rs 5000 crore in revenue if their VAT was reduced but their neighbouring state has earned the additional revenue of Rs 3500Rs 5000 crore in the past six monthsUddhav Thackeray chief minister MaharashtraHe mentioned Maharashtra West Bengal Telangana Andhra Pradesh Kerala Jharkhand and Tamil Nadu and quoted petrol prices in some cities with specific mention of Mumbairsquos higher and Damanrsquos comparatively lower price ldquoWhatever revenue you have earned in the six months will be utilised for your people But now I urge you to cooperaterdquo said the PM while reminding the CMs of federalism in the country People should know facts CMldquoThe people should know the facts Maharashtra has the biggest contribution to the countryrsquos development Yet the state gets discriminatory treatment in financial matters from the Centrersquorsquo said Thackeray in the statement ldquoMaharashtra has fought financial challenges while performing its public duty The states expect uniform treatment when one talks about the countryrsquos federal structurerdquo the CM saidThackeray said the prices of petrol and diesel did not rise because of the state government He shared information on tax sharing between the state and the Centre ldquoOn one litre of diesel sold in Mumbai the Centre gets Rs 2438 while the state receives Rs 2237 The same share on one litre of petrol sold in Mumbai is Rs 3158 and Rs 3255 respectivelyrdquo he said adding that the state has cut VAT on natural gas to 3 per cent from 135 per centAccording to the CM Maharashtra gets 55 per cent of the central taxes even as it is the highest contributor The statersquos contribution in direct taxes is 383 per cent while it collects 15 per cent of total GST If direct taxes and GST are put together Maharashtra becomes the top collector in the country Despite this the state hasnrsquot received Rs 26500 crore GST pending dues said the chief ministerHe said the state has tweaked norms to increase financial assistance to the victims of natural calamities but the Centre hasnrsquot revised the norms despite repeated demand He listed the relief the state has extended to the farmers traders and general public during the pandemiclsquoPol khol by PMrsquoThackerayrsquos counter started yet another battle with the BJP Opposition leader Devendra Fadnavis said blame game was safe and good for hiding misdeeds but it didnrsquot give relief to the common man ldquoYou have started crying after the PM has exposed Maharashtra governments profiteering It is about reducing VAT not about GSTrdquo he saidldquoWhen the government of India reduced excise duty on fuel last November it also requested states to reduce taxes but nonBJP ruled states including Maharashtra are busy only in profiting at the cost of sufferings of citizensrdquo said the exCM He said since the state government has already earned Rs 3400 crore by not reducing VAT ldquoIt is my sincere request to the CM to act immediately and give relief to all Maharashtrians including the Marathi manusrdquoHe said the Centre has given Maharashtra its GST share regularly and all pending dues were cleared ldquoThe deadline for sharing the remaining amount is July 2022 Will you reduce VAT on fuel if you get the statersquos GST share and refund people what has been charged so farrdquo he asked