Nirmala Sitharaman said the government has called on all states to reduce VAT.
New Delhi:
People should ask the state government in which they voted whether some of them are not cutting fuel prices, Finance Minister Nirmala Sitharaman said at a news conference on Monday evening. On why some states did not reduce Value Added Tax (VAT) on gasoline and diesel even after the Center recently cut the excise tax on consumer fuels, she said. The central government has called on the states and the people to request the parties they have voted for.
The Finance Secretary added: “Petrol and Diesel are not included in the Goods and Services Tax (GST) until the GST Council has set the tax rates to include.
Ms. Sitharaman spoke to the media following a meeting with Ministers and Finance Ministers of all states aimed at enhancing the investment climate in the country “in the face of a strong recovery” and “opportunities for due to a change in geopolitical reality. -pandemic”.
After widespread criticism of fuel prices spiraling upward, the Center reduced the excise tax on petrol and diesel by Rs 5 and Rs 10 per liter respectively on the eve of Diwali. Some states have reduced VAT to lower fuel prices. However, some states have asked the federal government to reduce the excise tax further. For example, the Finance Minister of Kerala calls the center’s move “damage control”. The ruling BJP’s loss of many seats in recent by-elections has also been attributed to rising fuel prices and other factors.
Opposition parties argue that the Modi government only slightly reduced the excise tax after having raised it significantly in the past. They argue that the state governments have not increased the VAT so there is no problem with this reduction and that the price will automatically decrease if the Center reverses the excise tax increase.
.
