PM urges Oppn states to reduce VAT on fuel

Prime Minister Narendra Modi urged several Opposition-ruled states on Wednesday to cut taxes on petrol and diesel in order to reduce the economic burden on citizens, citing similar reductions by the Union government earlier — an appeal that sparked a furious war of words and statistics between the Centre and opposition parties.

Modi, speaking during a meeting with chief ministers on the issue of Covid-19 via a videoconference, said it was in the interest of cooperative federalism to do so since many states had reduced their component of the levy.

“I request these states to do now what they should have done in November. By reducing the VAT you can lower the burden faced by the residents,” he said, calling it an “injustice” that consumers in some states paid more.