MUMBAI: Maharashtra chief minister Uddhav Thackeray on Wednesday refuted Prime Minister Narendra Modi's claim, that some states did not reduce VAT (Value-Added Tax) on petrol and diesel despite the excise duty cut by the Centre last November, saying that Maharashtra contributes the highest total direct tax which is 38.3 per cent. The state collects the highest GST of 15 per cent. The state governments cannot be blamed for the rise in fuel prices, he said reacting to Modi's statement.
Earlier, speaking at an interaction with chief ministers on the emerging Covid-19 situation in the country, Modi came down hard on opposition-ruled states, saying some states did not reduce VAT on petrol and diesel despite the excise duty cut by the Centre last November and had done "injustice" to the people by not transferring the benefits of the move to them.
Thackeray refuted Modi saying that the state cannot be blamed. He alleged that a stepmotherly treatment has been meted to the state from the Centre.
“Despite being the highest contributor to the Centre's tax kitty, Maharashtra is getting the step-motherly treatment from the Centre,” Thackeray said adding Maharashtra government is yet to receive Rs 26,500 crore in GST compensation from the Centre.
“In the recent Tauktae cyclone, some parts of Maharashtra suffered major damage, but the central government did not extend enough help. But the same centre extended more help to our neighbouring state Gujarat, why?” he asked.
Thackeray noted that the state government should not be blamed for the rise in fuel prices. He shared the data of the tax collections respectively by the state and the Centre.
“Today in Mumbai, the Centre charges Rs 24.38 as tax for one-litre diesel while the state tax is Rs 22.37. Similarly, for petrol, the Centre collects Rs 31.58 while the state collects Rs 32.55. Therefore, it is factually incorrect to blame the state government for the rise in fuel prices,” he said in a statement.
Uddhav Thackeray said that in a federal structure, it is not only the state, the Centre should also treat the states equally.
Maharashtra is the state that has been promoting natural gas to reduce pollution. The Maharashtra government reduced the taxes on CNG from 13.3 to 3% so that many people can afford natural gas, Thackeray added.