Mumbai: After Prime Minister Narendra Modi blamed opposition ruled states for not reducing VAT on fuel, Maharashtra CM Uddhav Thackeray fired back at PM Modi by saying state government is not responsible.
He said, “Today, in the price of one litre of diesel in Mumbai, Rs 24.38 is for the Centre and Rs 22.37 is for the state. In petrol price, 31.58 paise is central tax and 32.55 paise state tax. Therefore, it is not a fact that petrol and diesel have become more expensive due to the state.”
The Office of the Chief Minister added, “Maharashtra collects the highest GST of 15 per cent in the country. Combining both direct taxes and GST, Maharashtra is the number one state in the country.”
At a virtual meeting with Chief Ministers of different states, PM Modi focused on the issue of rise in fuel price. He alleged that prices of fuel were high in many opposition ruled states. He urged them to reduce Value Added Tax in “national interest” to benefit the common man.
“I am not criticising anyone but am praying to you for the welfare of people of your states…I urge you to reduce VAT now even after a delay of six months to benefit people,” he said.
On Thursday, reduction of VAT on fuel may be discussed at a Maharashtra cabinet meeting.
On Wednesday, Uddhav Thackeray said that his government had already given citizens tax relief on natural gas. “In order to promote the use of natural gas, the rate of value added tax has been reduced from 13.5 per cent to 3 per cent,” he said.
“Under various tax laws, the amount of arrears up to Rs 10,000 per year has been waived off. Benefit has been given to nearly 1 lakh small traders. Traders who have arrears of Rs 10 lakh have been given the option to pay 20 per cent of the total arrears. This will benefit the middle traders in more than two lakh cases,” he said.
The Maharashtra Chief Minister also stated that the facility to pay arrears in instalments or all at once in the case of arrears of Rs 50 lakh has been provided.
Speaking of stamp duty on imported gold and silver he said, “0.1 per cent stamp duty on gold and silver imported in the state has been waived. Exemption from tax for three years to passengers, pets, vehicles, goods, etc. traveling on ferry boats, ro-ro boats on the waterways starting from January 1, 2022 within the limits of the Maritime Board has been given to promote shipping in the state.”
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