Editor's Pick: PM flays non-BJP governments for not reducing VAT

Prime Minister Narendra Modi on Wednesday criticized non-BJP governed States for not reducing fuel prices, thereby failing to pass on the benefits of the Centre's excise duty cut to the people. During an interaction with Chief Ministers to discuss the emerging COVID-19 situation, Mr. Modi said, "these States should bring in immediate remedial measures to stop this injustice." Mr. Modi's remarks drew sharp response from the Opposition. Kerala Finance Minister K.N. Balagopal said Mr. Modi's stand was misleading, and instead of asking resources-starved States to slash their limited income sources, the Centre should stop collecting cess and surcharge on petrol and diesel. "Kerala has not raised sales tax on petrol and diesel in the past six years. It is one of the few States which has not done so. So, what is that we should reduce," Mr. Balagopal wondered. Maharashtra Chief Minister Uddhav Thackeray said Mr. Modi's comment was far removed from reality. "Today in Mumbai, behind every litre of diesel, the Centre's VAT is Rs 24.38, while the State VAT is Rs 22.37. For petrol, Rs 31.58 is the Centre's tax, while the State tax is Rs 32.55," he said. In the current global scenario, for the strength of India's economy, coordination between the Centre and States in economic decisions is necessary. In the conditions imposed by global events, this spirit of cooperative federalism becomes important, Mr. Modi said. The reluctance of States to reduce excise duty and VAT is linked to the revenues generated both for the Centre and the States. The Centre's decision to increase fuel prices once elections to crucial State assemblies got over, had exposed the political calculations that were made to keep a lid on the prices despite a sharp spike in global crude price. This was followed by the first cut in Central excise duties on petrol and diesel in over three years but the relief was hardly felt in the face of 14 price hikes in 16 days. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor's Pick and more. Click here The Hindu's Editorials Preventing harm: On judicial intervention against hate speech The blueprint: On internal elections and Congress revival The Hindu's Daily Quiz Players from Russia and which other European nation have been banned from participating in the 2022 Wimbledon tournament? Romania Moldova Poland Belarus To find out the answer and play the full quiz, click here

Editor's Pick 28 APRIL 2022

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PM flays non-BJP governments for not reducing VAT Prime Minister Narendra Modi on Wednesday criticized non-BJP governed States for not reducing fuel prices, thereby failing to pass on the benefits of the Centre's excise duty cut to the people. During an interaction with Chief Ministers to discuss the emerging COVID-19 situation, Mr. Modi said, "these States should bring in immediate remedial measures to stop this injustice."  Mr. Modi's remarks drew sharp response from the Opposition. Kerala Finance Minister K.N. Balagopal said Mr. Modi's stand was misleading, and instead of asking resources-starved States to slash their limited income sources, the Centre should stop collecting cess and surcharge on petrol and diesel. "Kerala has not raised sales tax on petrol and diesel in the past six years. It is one of the few States which has not done so. So, what is that we should reduce," Mr. Balagopal wondered. Maharashtra Chief Minister Uddhav Thackeray said Mr. Modi's comment was far removed from reality. "Today in Mumbai, behind every litre of diesel, the Centre's VAT is Rs 24.38, while the State VAT is Rs 22.37. For petrol, Rs 31.58 is the Centre's tax, while the State tax is Rs 32.55," he said. In the current global scenario, for the strength of India's economy, coordination between the Centre and States in economic decisions is necessary. In the conditions imposed by global events, this spirit of cooperative federalism becomes important, Mr. Modi said. The reluctance of States to reduce excise duty and VAT is linked to the revenues generated both for the Centre and the States. The Centre's decision to increase fuel prices once elections to crucial State assemblies got over, had exposed the political calculations that were made to keep a lid on the prices despite a sharp spike in global crude price. This was followed by the first cut in Central excise duties on petrol and diesel in over three years but the relief was hardly felt in the face of 14 price hikes in 16 days.  Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor's Pick and more.   Click here The Hindu's Editorials Preventing harm: On judicial intervention against hate speech  The blueprint: On internal elections and Congress revival  The Hindu's Daily Quiz Players from Russia and which other European nation have been banned from participating in the 2022 Wimbledon tournament?  Romania Moldova Poland   Belarus To find out the answer and play the full quiz, click here

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