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Gehlot asks Centre to cut excise duty for states to reduce VAT on petrol, diesel | Latest News India

Rajasthan chief minister Ashok Gehlot on Wednesday stated Prime Minister Narendra Modi maybe by mistake referred to Jaipur among the many locations with greater gasoline costs and identified petrol and diesel are costlier in Bhopal in Bharatiya Janata Party (BJP) dominated Madhya Pradesh.

The feedback got here hours after Modi requested states, together with Rajasthan, to reduce Value Added Tax (VAT) on fuels at a meeting with chief ministers.

Gehlot stated the BJP-led authorities on the Centre has earned about 26 lakh crore from excise duty on fuels in eight years. He stated that is the very best any authorities has earned within the nation’s historical past by taxing petrol and diesel.

Modi stated the Centre cut the excise duty however many states didn’t reduce VAT to present reduction to folks.

Gehlot maintained Rajasthan lowered VAT by 2% on petrol and diesel in January 2021 even because the Centre didn’t reduce the excise duty. He added the Centre imposed a brand new cess of 4 on diesel and 2.5 per litre on petrol within the title of agriculture infrastructure and improvement two days after the state price range (2021-22). Gehlot stated due to this, folks in Rajasthan couldn’t profit from the VAT discount.

In November, the Centre lowered the excise duty on petrol by 5 and diesel by 10 per litre. The duty on petrol was elevated by 10 and diesel by 13 per litre in May 2020. Gehlot stated this implies excise duty enhance was not even lowered fully.

Gehlot stated states levy VAT on the Centre’s excise duty. He added by decreasing the excise duty, the VAT is routinely lowered. For this motive, due to the discount in excise duty in November, Rajasthan routinely lowered VAT by 1.80 per litre on petrol and 2.60 per litre on diesel.

“To give relief to the common person, the state government on November 17, 2021, reduced VAT on petrol by 4.96% and on diesel by 6.70%. Due to the reduction made thrice by the state, there was a revenue loss of about 6300 crore per year,” stated Gehlot. He added Modi solely talked about the income lack of 6000 crores of BJP-ruled Karnataka and 3500-4000 crores of Gujarat. “These two states would probably have been mentioned in view of the upcoming assembly elections there.”

Gehlot stated Modi talked about VAT however not concerning the Centre’s excise duty. “In May 2014, when Modi became the Prime Minister, excise duty was 9.20 per litre on petrol and 3.46 per litre on diesel, but today excise duty is 27.90 per litre on petrol and 21.80 per litre on diesel.”

Gehlot stated in the course of the earlier Congress-led authorities, the states used to get their share of excise duty. “But now the share of the states has been continuously reduced to just a few paise per litre, so the states are forced to increase their VAT.”

State BJP chief Satish Poonia stated the Centre has lowered excise duty on petrol and diesel however the Gehlot authorities was not decreasing VAT and that’s the reason individuals are not getting reduction. He added the BJP-ruled states resembling Karnataka, Gujarat, Uttar Pradesh, and Haryana have lowered VAT for reduction to the widespread particular person.

“Due to the high VAT, smuggling of petroleum products is at its peak in the state…[This has] led to the closure of 1,500 petrol pumps in about 17 border districts of the state.”

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