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Reduce VAT on fuel, give benefits to people: PM Modi to states

PM Modi told the chief ministers of states that he expects those states which did not reduce VAT to extend the benefit.

April 27, 2022 / 02:22 PM IST
Prime Minister Narendra Modi (File image)

Prime Minister Narendra Modi (File image)


Prime Minister Narendra Modi has urged the chief ministers of states to cut VAT on fuel to pass on the benefits and ease the burden on citizens. He also said though some states had reduced taxes, others didn't provide relief.

"Some states didn't reduce VAT on fuel. Inaction caused inconvenience to commuters. Centre-State teamwork is needed for the welfare of people," PM Modi said.

PM Modi at the COVID-19 review meeting with the chief ministers also said in order to reduce the burden of rising fuel prices, the Central government decreased excise duty in November 2021.

Also Read | Proposal to bring ATF under GST under consideration, urged states to reduce VAT: Jyotiraditya Scindia

"The Centre decreased the tax of fuel, some states followed that but some didn't. Because of that fuel prices are more in those states which is impacting the people," PM Modi said.

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He told the chief ministers of states that he expects those states which did not reduce VAT to extend the benefit.

The PM listed petrol prices of many states and urged the states who have not reduced VAT yet to do it in the spirit of cooperative federalism.

The PM went on to say, "Coordination between state and Centre is very important. The Ukraine war has affected the supply chain which has posed many challenges. Hence Cooperative Federalism is important."

Also Read | Seven states have cut VAT on jet fuel, more expected to follow soon

"I am not criticising anyone but request Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand, TN to reduce VAT now and give benefits to people," PM Modi stated.



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first published: Apr 27, 2022 02:22 pm
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