Fuel price cut: States differ over further relief to consumers

NEW DELHI: The Centre’s cut in excise on petrol and diesel to bring prices down has been largely welcomed. However not all states are willing to reduce their share of tax to provide further relief to consumers, as that would mean lesser flow into their coffers. The viewpoint has received support from some quarters.
States are between devil and deep sea: Chidambaram
Former Finance Minister P Chidambaram on Sunday slammed the Union government for not giving states more funds, though reducing additional excise duty on fuel which will be borne by the Center.
“The states are getting very little by way of share of duties on Petrol and Diesel. Their revenue is from VAT on Petrol and Diesel, I wonder if they can afford to give up that revenue unless the Centre devolved more funds or gave them more grants. The situation is like being between “the devil and the deep sea”,” he tweeted.