'Not criticising, just appealing': PM Modi to chief ministers on petrol, diesel tax

As PM Modi discussed Centre-state synergy over petrol, diesel tax, he took the names of Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Jharkhand, Kerala and said these states did not reduce the state tax.

Had Karnataka not reduced its tax on petrol and diesel, the state government would have earned additional revenue of ₹5,000 crore in the last six months, PM Modi said on Wednesday as he addressed a meeting with the chief ministers of state. Though the meeting was to take the stock of the Covid-19 situation, PM Modi emphasised the need for Centre-state cooperation and said such cooperation is more needed in the present war situation when the country is facing many challenges because of the disruption in the supply chain.

PM Modi held a meeting with the chief ministers on Wednesday regarding the Covid-19 situation across the nation through a video conference.(PTI)

Giving an example of the petrol-diesel price, PM Modi said the Centre waived the duty last year to reduce the burden of the people and then urged all states to do the same so that the benefit can be transferred to the users. "Some states abided by, but some states did not do. In these states, petrol, diesel is 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.

Gujarat could have made ₹3,500 crore extra had it not reduced the burden, PM Modi said adding that he is not 'criticising' but only 'appealing' to the state chief ministers. Gujarat and Karnataka's neighbouring state, on the other hand, earned somewhere between ₹3.500 crore to ₹5,000 crore in the last six months.

Naming Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Jharkhand and Kerala, PM Modi said these states have not reduced the tax for whatever reasons maybe.  "I am not even going to discuss how much revenue they have earned by not reducing the tax. I am just appealing to you to implement what should have been done six months ago. You are all aware that 42% of the Centre's revenue goes to the state," PM Modi said.

"Petrol is ₹111 per litre in Chennai, in Jaipur, it is over ₹118, in Hyderabad it is over ₹119, in Kolkata, it is over ₹115. In Mumbai, a litre of petrol costs over ₹120. But in Daman and Diu, a litre costs ₹102. While in Kolkata, it's around ₹115, in Lucknow, it's ₹105," PM Modi said explaining what happened owing to states not reducing fuel taxes.