Fuel prices: BJP president JP Nadda asks states to reduce VAT, opposition retaliates

Vibha Sharma 

Tribune News Service 

New Delhi, May 22

A day after the BJP-led centre cuts the excise duty on petrol and diesel, political parties traded charges with the Congress terming the reduction as “cluelessness and trickery”.

Putting the onus on rival parties, BJP president JP Nadda appealed to all state governments, “particularly those states which have not passed on the benefits of rate cut announced in November 2021 to their citizens, to rise above their politics and reduce VAT on diesel and petrol prices to give relief to the common man in respective states”.

Nadda said the BJP under Prime Minister Modi is giving a “pro-active, pro-responsive and pro-poor government and is highly committed to improve living standard of all sections of society and empower poor and weaker sections of the society”.

“This is the second time announced a steep cut in the excise duty on petrol and diesel. When the Prime Minister reduced the prices of petrol and diesel on November 3, 2021, the Opposition-ruled states did not reduce VAT on petrol and diesel while all BJP -ruled states had passed on this benefit to their citizens”.

Nadda said even during his review meeting on April 27, the PM had appealed to chief ministers to cut the VAT on petrol and diesel in order to provide relief to common man.

Reacting to BJP’s demand, BJD MP Amar Patnaik said there was “limited scope” for the collection of revenue for the states and that the states “already have a narrow revenue-raising space” in the form of VAT.

Senior Congress leader P Chidambaram wondered if states can afford to give up revenue from VAT on petrol and diesel unless the centre devolves more funds or gives them more grants.

States are getting very little by way of share of duties on petrol and diesel, he said, adding “I wonder if they can afford to give up that revenue unless the centre devolved more funds or gave them more grants”.

Launching a fierce attack, former Congress chief Rahul Gandhi also compared petrol prices between May 1, 2020 and now. “The government must stop fooling citizens. People deserve genuine relief from record inflation,” he said.

Congress spokesperson Gourav Vallabh claimed the government’s “cluelessness about the economy and financial management has been out in the open for long now. Instead of accepting it and seeking guidance from experts, BJP only resorts to trickery to create an optical illusion”.