Government questions opposition over no changes in VAT post reduction in excise duty

Publish Date: 06 Nov, 2021 |

Two days after reducing excise duty on Petrol and Diesel, Bharatiya Janata Party levelled allegations against the opposition for not reducing the Value Added Tax that is imposed on the fuels. It also accused the opposition parties of carrying out insignificant politics regarding the fuel prices, that were continuously increasing since October start. 

Central govt. attacks opposition parties

The central government said that the opposition was constantly raising questions over the government about the increase in fuel prices but now when the government has reduced the excise duty to give relief to people, the opposition ruled states have not yet decreased the amount of VAT on the fuels. 14 states have not yet reduced the Value Added Tax. 22 states have brought decline in the VAT but 14 states have not yet done anything to reduce the prices of Petrol and Diesel.

These 14 states include Punjab, Rajasthan, Chhattisgarh, Delhi, Maharashtra, West Bengal, Andaman and Nicobar, Orissa, Jharkhand, Kerala , Meghalaya, Tamil Nadu, Andhra Pradesh and Telangana. 

The spokesperson of BJP said that the states ruled by the saffron party decreased the VAT on fuels to add to the relief of people brought by the reduction in excise duty by the central government. He also said that if states ruled by BJP can provide relief to people, why can’t states ruled by congress do so?

Sharad Pawar demands GST compensation

NCP chief Sharad Pawar, while replying to this, said that he will talk to the state government about the same and will definitely provide relief to the public but the central government must provide the GST compensation to states first as the decision for helping people is possible after that.

Excise duty on fuel reduced

The hike in Petrol prices that started from October has finally come to rest now. On day before Diwali, government of India gifted decrease in petrol prices to the general public. The central government reduced excise duty on Petrol prices by Rs 5 and on Diesel prices by Rs. 10. This decision came into effect on November 4. 

After reduction in excise duty, some states also reduced VAT that is imposed on Petrol and Diesel.Karnataka, Goa, Assam and Tripura reduced the VAT by Rs. 7 causing Diesel to get cheaper by Rs. 17 and Petrol by Rs. 12. 


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