‘People Should Ask Their State Governments About High Fuel Prices’: Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman stated in a press brief that people should ask their state governments about high fuel prices. After the Centre’s excise duty reduction on petrol and diesel, the government had appealed to states to cut Value Added Tax (VAT) to further bring down rates.

According to the reports, Finance Minister Nirmala Sitharaman was addressing the media following an interaction with chief ministers and finance ministers of the states in a bid to enhance the investment-friendly climate in the country. She stated that Petrol and Diesel can’t be included in Goods and Services Tax (GST) till the GST Council sets the rate for their inclusion.

After widespread criticism over soaring fuel prices, the Centre had cut excise duty on petrol and diesel by ₹ 5 and ₹ 10 per litre respectively just on the eve of Diwali. Several states followed suit by reducing VAT to bring down fuel prices. However, few states have sought a further reduction in excise duty from the union government. The Kerala Finance Minister, for instance, dubbed the centre’s move “damage control”.

Opposition parties have trained guns on the Modi government saying the government only marginally slashed the excise duty after having hiked them significantly in the past. According to them, state governments did not increase VAT so there’s no question of reducing it.

 

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