The Minister said these states are "trying to pass off proportionate reduction in the VAT component due to a cut in central excise announced by FM, as their own reduction in VAT." 
The Minister said these states are "trying to pass off proportionate reduction in the VAT component due to a cut in central excise announced by FM, as their own reduction in VAT." 
In yet another attack on the state governments, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has accused states like Rajasthan, Maharashtra and Kerala of claiming the credit for the cut in excise duty on petrol and diesel announced by the Centre. The Minister said these states are "trying to pass off proportionate reduction in the VAT component due to a cut in central excise announced by FM, as their own reduction in VAT."
He further said, “Simply put -- VAT is charged on the entire selling price, inclusive of central excise. When it is reduced by Rs 8 on petrol and Rs 6 on diesel, the VAT component reduces by a proportionate amount of Rs 2.25 on petrol and Rs 1.17 on diesel, in case of Rajasthan as it charges 31 per cent VAT.”
He further claimed that the reduction in VAT hasn’t got anything to do with any decision by the state governments as they did not reduce taxes in November even as the BJP states did. Puri also underscored that the non-BJP ruled states have “gone a step further by claiming undue credit for the reduction announced by the centre.”
The Union Minister further mentioned, “If they are committed to providing relief to the citizens in their states who are still paying over Rs 13-15/litre more than the BJP ruled states, they must reduce the percentage of VAT.”
This, however, is not the first time that Puri has commented on the much-awaited move to reduce VAT on petrol and diesel. On the excise duty reduction announced by the Centre, Puri also told Business Today TV’s Siddharth Zarabi that the downward revision is “reflective of the Prime Minister’s personal concern for the welfare of the common man (aam aadmi).”
He added that petroleum and diesel consumption for the earlier month is 14 per cent higher than the corresponding period in the previous month. The minister mentioned that the consumption of diesel rose by around 2 per cent in the previous month.
He also highlighted that an overall increase in consumption cannot “conceal the fact it conceals and it should not be allowed to conceal.” Puri also took this opportunity to talk about the many states responding to the Prime Minsiter’s comments on the reduction in excise duty.
He said, “If we were having an academic argument about different stakeholders in a system of cooperative federalism, it’s a Centre’s right to raise revenue, it’s a state’s right to raise revenue that would not be a focused discussion.”
He further expounded, “The fact of the matter is that a citizen of India whether he or she lives in a BJP-ruled state or in a non-BJP ruled government whereas a non-BJP government that citizen has the same rights. So how can you allow a situation where [in] a BJP-ruled state, petrol is Rs 15 cheaper than in a non-BJP state.”
Puri also talked about his conversation with Delhi Chief Minister Arvind Kejriwal regarding the same and said, “I said you don’t want to reduce the excise duty (aap kam nahi karna chah rahe hain) but I will tell you that your geographical location is such that you will not have any other choice. He did not reduce after the first reduction so he though 20 per cent after a few days there was a shortage.”
“Now, you can’t go all the way from a place X to Y to fill up long distance. But if you are in a place like Delhi and you’re travelling to Faridabad or Gurgaon etc. so instead of filling here you fill there.”
Also read: VAT on petrol, diesel goes down in Maharashtra, Kerala, 6 other states; details here
Also read: Petrol under-recovery at Rs 13, diesel Rs 24; Reliance-BP says ops unsustainable
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