Maharashtra CM Uddhav Thackeray calls fuel excise cut ‘illusion of relief’, BJP strikes back

MUMBAI: The Centre’s announcement of a cut in central excise duty on fuel set off a political slugfest between the MVA government and the state BJP on Saturday.
CM Uddhav Thackeray demanded that the Centre slash the central excise duty on fuel to rates that were prevalent 6-7 years ago. Only then would citizens get real relief, he said, adding that otherwise it would only be an illusion. The BJP, on the other hand, demanded that the state now reduce its taxes on fuel.
In a press release, Thackeray said, “Two months ago, the Centre hiked central excise duty by Rs 18.42 a litre on petrol and today reduced it by Rs 8. Similarly, the duty on diesel was hiked by Rs 18.24 and it has now been cut by Rs 6. First, increase the rates sharply, then reduce it by a pittance and create an illusion of having brought them down. This is not correct,” he said.
Hitting back, state BJP president Chandrakant Patil said the CM, instead of giving a speech, should announce a cut in states taxes on fuel.
“Last November, the Centre reduced rates by Rs 5 per litre on petrol and Re 10 on diesel. At the time, 22 states cut their taxes, but the Maharashtra government refused to reduce the Value Added Tax (VAT) on fuel. The result was that fuel was cheaper in neighbouring states but not here. Instead of lecturing on increased prices, the state must reduce rates on fuel and aid in bringing down the prices of essentials,” Patil said.
Meanwhile, transporters’ union has welcomed the Centre’s decision. “We are now looking at Maharashtra and other state governments and appealing to them, like we have been doing for the past months, in the hope that they will announce a reduction in VAT, further bringing down fuel prices on par with neighbouring states,” said Bal Malkit Singh of the All India Motor Transport Congress.