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Prime Minister Modi spoke about VAT collected by states on fuel, but did not mention central government excise taxes – Ashok Gehlot

Prime Minister Modi spoke about VAT collected by states on fuel, but did not mention central government excise taxes - Ashok Gehlot - (A)

When Prime Minister Narendra Modi reported on rising fuel prices in many opposition-ruled states, including Rajasthan, Chief Minister Ashok Gehlot said on Wednesday that the prime minister “accidentally mentioned Jaipur instead of saying Bhopal” as gasoline and diesel cost more in BJP. ruled Madhya Pradesh.

The Congress leader also said that the Rajasthan government has reduced VAT on diesel and gasoline three times, resulting in an annual revenue loss of about Rs 6.3 billion Gujarat 4 billion (the two states governed by the BJP)”.

He claimed that the center has earned around Rs 26,000 crore in excise duty in eight years, which he says is the highest amount earned by imposing a tax on petrol and diesel in the country’s history.

The prime minister spoke about the sales tax collected by the states, but gave no information about the central government’s excise taxes, he said.

Earlier in the day, the Prime Minister, in a meeting with the CMs, urged states to reduce VAT for the benefit of the people. He mentioned the names of cities, including Jaipur, and fuel prices there.

After the review meeting, the CM said that Modi had claimed that the central government had reduced consumption tax, but that many states had not reduced VAT, so the relief had not passed through to the people.

“The Prime Minister took the name of Jaipur but he wanted to convey this message only to the BJP-led states because even today petrol and diesel prices in Bhopal are higher than in Jaipur. He may have accidentally mentioned ‘Jaipur’ instead of saying ‘Bhopal,'” he said in a statement.

Gehlot said that the Rajasthan government reduced VAT on gasoline and diesel by 2% on January 29, 2021, while the center did not reduce consumption tax at that time.

“Two days later, in the 2021-22 budget, the Indian government imposed a new tax of Rs 4 on diesel and Rs 2.5 per liter on petrol in the name of infrastructure and agricultural development, so Indian residents in Rajasthan were unable to receive the benefit. of a VAT reduction of 2%.

“On November 4, 2021, the central government reduced the excise duty on gasoline by Rs 5 and diesel by Rs 10 per liter, while during the May 2020 lockdown the government increased the excise duty on gasoline by Rs 10 per liter. rupees and diesel for Rs.13 per liter, which means the amount of excise duty increased in Covid have not even been fully reduced,” he said.

He explained that the state sales tax is applied on top of the downtown excise tax, so the sales tax is automatically reduced when the excise tax is reduced.

That is why the Rajasthan government’s VAT has been automatically reduced by Rs 1.80 per liter for gasoline and Rs 2.60 per liter for diesel due to the reduction of consumption tax on November 4, 2021, he said.

“In order to ease the burden of ordinary people, the state government reduced the VAT on gasoline by 4.96% and VAT on diesel by 6.70% on November 17, 2021. Due to the three-fold cut in the state, there was a revenue loss of about Rs 6,300 crore per year, but the Prime Minister only mentioned the revenue loss of Rs 6,000 crore per year in Karnataka and Rs 3,500-4,000 crore in Gujarat,” he said. Gehlot.

He said that Modi probably mentioned those two states in connection with the upcoming general election there.

“In May 2014, when Modi became prime minister, the excise duty was Rs 9.20 per liter for petrol and Rs 3.46 per liter for diesel, but today the excise duty is Rs 27.90 per liter of gasoline and Rs 21.80 per liter. of diesel During the UPA government, the states received their share of the excise tax, but now the states’ share has been steadily reduced to a few countries per liter, forcing the states to increase their sales tax.” , said.

During the Modi government’s tenure, crude oil prices on the international market averaged $61 a barrel, even then gasoline sells for more than Rs 110 and diesel for more than Rs 100 a liter, he said.

During the UPA administration, the price of crude oil was $100 a barrel, but gasoline was not allowed to become more expensive, he added.



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