Manas Dasgupta
NEW DELHI, April 27: The chief ministers of the non-BJP states have reacted strongly to the prime minister Narendra Modi attacking them for not reducing the Value Added Tax (VAT) on petrol and diesel last year. The West Bengal Chief Minister Mamata Banerjee on Wednesday joined a chorus of opposition leaders criticising Modi for asking the state governments to reduce VAT on fuel prices without the centre taking any cut on its revenue.
Terming the interaction with Modi earlier in the day “one-sided” and “misleading”, Banerjee insisted that her government has spent Rs 1,500 crore in the last three years to subsidise petrol and diesel prices in the state.
Earlier in the day, PM Modi, during an interaction with CMs on the emerging Covid situation in the country, came down hard on Opposition-ruled states and said some states did not reduce VAT on petrol and diesel despite the excise duty cut by the Centre last November. He also accused the opposition-ruled states of doing “injustice” to the people by not transferring the benefits of the move to them.
He had particularly named the states like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu which, he said, had “some reason or the other did not listen to the central government” to reduce VAT on fuel and the citizens of those states continued to be burdened.
Hitting out at Modi’s remarks, Maharashtra Chief Minister Uddhav Thackeray had stated that the Centre owed Maharashtra Rs 26,500 crore. Thackeray had also accused the centre of giving step-motherly treatment to Maharashtra and had pointed out that the state governments were not responsible for the rise in prices of petrol and diesel. Banerjee too joined the chorus accusing the centre of giving step-motherly treatment to the opposition-ruled states.
Congress chief spokesperson Randeep Surjewala attacked Modi and demanded that he give an account of the Rs 27 lakh crore “collected” by the BJP government from tax on petrol and diesel. Pointing out that he excise duty during the Congress regime was Rs 9.48 per litre on petrol and Rs 3.56 per litre on diesel, which was raised to Rs 27.90 per litre on petrol and Rs 21.80 per litre on diesel during the Modi government, Surjewala asked the centre to roll back over Rs 18 per litre hiked by the present regime.
“Modi ji, No criticism, No distractions, No Jumlas! Please give an account of Rs 27,00,00,00,00,00,00 (Rs 27 lakh crore) collected by BJP Govt from Tax on Petrol & Diesel,” Surjewala said in a series of tweets.
The West Bengal Chief Minister said it would have been better for the Prime Minister “not to discuss the subject” at a meeting called on the COVID–19 situation. “Obviously, it was a one–sided agenda. The Opposition Chief Ministers were not able to speak. We listened to you carefully but we do not agree with your views. The Opposition States are treated with a step–motherly attitude.”
Ms. Banerjee claimed that the Centre owes ₹97,000 crore to West Bengal and even if half the amount is disbursed to the State then the government would reduce VAT on petroleum. She said her government was giving a ₹1 reduction on VAT on petroleum products which costs ₹1,500 crore to the exchequer. She said the Modi government has raised ₹17,31,242 crore through excise collection on petroleum products.
“We wanted that prices of petroleum products be reduced and his [Prime Minister] gift is he is telling the States to do so. From where will we do that?” She said only 25% of the money collected by the Central taxes is given to the States. She also accused the Centre of allocating more funds to the BJP–ruled States and said while the States which have given full support to Modi were being highlighted, the Opposition–ruled States face “discrimination and step–motherly attitude”.
She said the Centre was going on increasing cess on petroleum products but the benefits of the cess were not shared with the states. She said her state has a number of social sector schemes which would continue despite the “non–cooperation of the Centre.”
Ms. Banerjee accused the Centre of weakening the federal structure and running a “presidential form of governance instead of cooperative federalism.” She said she was extending her full moral support to all States whose names were taken by the Prime Minister to reduce VAT on petroleum products.
