• Karnataka Congress slams Modi over urge to reduce VAT

    National
    During the VC, Modi stated that if Karnataka had not reduced its petrol and diesel taxes, the state government would have earned an additional 5,000 crore in the last six months.


    Digital Desk: On Wednesday, the Karnataka Congress slammed Prime Minister Narendra Modi for suggesting that some states reduce Value Added Tax (VAT) on petrol and diesel.

    "There is one word to describe @narendramodi's words & actions. It's 'Hypocrisy'. Central excise duty on Diesel is now ₹21.84 & on Petrol is ₹27.91. This is an increase from ₹3.45 & ₹9.21 respectively since BJP came to power. Restore Excise Duty to pre-Modi times," Siddaramaiah, the Leader of Opposition, on Wednesday said in a post on Twitter

    The statements follow the Prime Minister's video conference with chief ministers to assess the impact of Covid-19 across the country.


    During the VC, Modi stated that if Karnataka had not reduced its petrol and diesel taxes, the state government would have earned an additional 5,000 crore in the last six months.

    Using the petrol-diesel price as an example, PM Modi stated that the Centre waived the duty last year to reduce the burden on the people and then urged all states to do the same so that the benefit could be transferred to users.

    "Some states abided by, but some states did not. In these states, petrol, diesel are still dearer. This is, in a way, an injustice to the people of the state and also detrimental for the economy of other states," PM Modi said, adding that states which have reduced the tax could have earned more money like "Maharashtra, Gujarat's neighbour" by not reducing the burden.

    Karnataka Chief Minister Basavaraj Bommai said on Wednesday that the state's economy will be assessed before a decision is made.

    On Wednesday, Bommai remained non-committal on any further reductions in fuel tax, stating that any decision in this regard will be made after a thorough examination of the state's economy.

    "He (PM) gave an example. In November when the central government reduced excise duty, some states too reduced, it has benefited the people of the state and it is cooperative federalism. He said it will help if other states reduce tax as well, so that neighbouring states are not affected," Bommai told reporters in response to a question.
     

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