Maharashtra government must reduce VAT on petrol, diesel, Congress demands

Contrary to the stands taken by two other ruling parties, Congress has demanded that the Maharashtra Vikas Aghadi (MVA) government should reduce the value-added tax (VAT) on petrol and diesel

Contrary to the stands taken by two other ruling parties, Congress has demanded that the Maharashtra Vikas Aghadi (MVA) government should reduce the value-added tax (VAT) on petrol and diesel. It has also asked the Central government should bring the auto fuel under the goods and services tax (GST) regime.

Congress has demanded that the Maharashtra Vikas Aghadi (MVA) government should reduce the value-added tax (VAT) on petrol and diesel. (REUTERS)

Patole pointed out that the Congress-ruled Rajasthan and Punjab had already reduced their taxes after the Central government’s decision to reduce the excise duty on petrol and diesel by ₹5 and ₹10 a litre respectively. Patole said that on similar lines, the Maharashtra government too should bring down its taxes.

Patole said that the Central government should also bring the auto fuel under the GST regime so that the petrol and diesel are sold at a reasonable price. “Instead of indulging in the allegations and counter-allegations, the Centre should include the petrol and diesel under GST. The step will automatically do away with the local taxes by the state governments,” he said.

However, the Nationalist Congress Party (NCP) has opposed bringing auto fuel under the GST regime. Deputy chief minister and finance minister Ajit Pawar had said that the move will put the state finances in the doldrums. Pawar also said that reducing VAT on fuel is difficult keeping the financial health of the state in mind. The ruling parties have blamed the Centre for the higher excise, cess on fuel and non-payment of the dues in GST compensation.

Patole said on Wednesday that the Central government has earned the revenue of ₹30,000 crore from excise duty and cess between March 1 and October 31, 2021, from Maharashtra. The state government has right over it. The Centre still levies heavy excise and cess on petrol ( ₹27.90 a litre) and diesel ( ₹21.80 a litre) and has not transferred the state’s share. The Central government is trying to weaken the state financially,” he said.