Fuel row rages as state yet to decide on VAT

MUMBAI: A day after prime minister Narendra Modi blamed Maharashtra among other non-Bharatiya Janata Party (BJP)-ruled states for the high prices of petrol and diesel, the war of words between the state government and the Centre continued on Thursday. Amid the row, the state cabinet decided not to reduce the valueadded tax (VAT) on the fuel after hinting at it earlier in the day.

Union petroleum minister Hardeep Singh Puri, in a series of tweets, said the state had brought down tax on imported liquor but not VAT on fuel. The tweets invited sharp reactions.

Puri also tweeted that the Maharashtra government had collected ₹79,412 crore as fuel taxes since 2018 and was expected to collect ₹33,000 crore this year.

Responding to the tweet, Shiv Sena Rajya Sabha MP Priyanka Chaturvedi said Maharashtra’s contribution through direct tax was 38.3%, and the goods and services tax (GST) dues the Centre owed to the state stood at ₹26,500 crore.

Sena leader and environment minister Aaditya Thackeray too asked the Centre to respond to the non-payment of GST dues.

“It [revenue through VAT] is not a crime, it is the right of the state. Our government has planned for all sections, including farmers and women. If we are getting [revenue through] VAT, it is the right of the state. At the same time, the pending GST dues have to be given to the states as a constitutional duty. The Centre must respond to why the GST which is due to Maharashtra is not being given,” Thackeray said.

Another Sena leader Sanjay Raut said the issue of VAT on fuel raised by the PM on Wednesday was not required in a meeting called to discuss the Covid-19 situation.

“The meeting was called to

ANI Priyanka Chaturvedi