Centre on Wednesday urged all states to consider lowering the VAT in fuel prices tp provide relief to people. The decision was taken by Prime Minister Modi in virtual meet with all the chief minister of the states, thus invoking cooperative federalism.
Several CM’s slams centre over VAT
As the discussion for the current covid situation continues, many states however did not agree to PM Modi’s decision on decreasing VAT. States like Maharashtra, Tamil Nadu. West Bengal, Telangana, Andhra Pradesh, Kerala and Jharkhand are a few who did not agree to the request put forward by the Prime Minister.
As per reports, PM Modi said during the meeting, “As the economic challenges continue to arise from the Russia-Ukraine conflict, I request all states that during the current global challenges we should work as a team in line with the ethos of cooperative federalism.”
According to sources, The states that have reduced the VAT on fuel by Rs 5 on petrol and Rs 10 on diesel have forgone revenue of Rs 16,000 crore. This is estimated during the month of November to March. PM Modi further added that those states where BJP or its alliance is in office has made the changes as per government order, including Delhi. But the rest of states like Maharashtra, Telangana and Tamil Nadu had made huge profits by collecting Rs 2460 crore excess by not following the orders. This led to many common man a worrisome situation in the states.
Opposition Slams PM’s cooperative federalism
Uddhav Thackery who is the Chief Minister of Maharashtra said. “ it is not correct to say that the prices of petrol and diesel are going up because of the state’s VAT. “ he further commented that the state always receives a step-motherly treatment from the centre despite being the highest Tax contributor.
Mamata Banerjee who is the Chief Minister of West Bengal blamed the central government for not letting Chief Minister’s to speak or clarify. She further commented, “PM Modi’s statement are fake and misleading.” In addition she also said that her government has been providing a subsidy of Re 1 per litre of fuel since the last three years.