States hit back over govt’s appeal to reduce fuel VAT

Parties in power in states singled out by Prime Minister Narendra Modi for not reducing levies on fuel hit back on Wednesday, accusing the PM of being disingenuous and alleging that the Union government was instead the one fleecing citizens by levying a variety of taxes and cesses.

The response came after Modi urged states to cut Value Added Tax (VAT) on fuel in “national interest”, a remark he made during a videoconference with chief ministers meant to discuss Covid-19 and the recovery from the pandemic.

The PM named Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala for not having reduced VAT since November, when the central government had cut the excise on petrol and diesel. All of these states are ruled by rivals of the Prime Minister’s Bharatiya Janata Party. Modi said levies must now be cut further to lower the burden on the people who are reeling under high inflation.