Petroleum minister Hardeep Puri takes non-BJP CMs head-on with facts

Prime Minister Modi on Wednesday, invoking the spirit of cooperative federalism and pointing out the challenges arising out of the Russia-Ukraine conflict, appealed to opposition-ruled states to reduce Value Added Tax (VAT) levied by states on petroleum products to give some respite to the common man.

Chief Ministers of opposition-ruled states – Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu – took no time to reject PM Narendra Modi’s appeal alleging that the centre was trying to pass the buck on states for rising fuel prices.

Under attack from the states which were named by PM Modi, Union Petroleum Minister Hardeep Singh Puri took a jibe at these states and said that petrol would be cheaper if opposition states reduced taxes on fuel instead of liquor.

Puri put it straight with the facts suggesting that the opposition is conveniently presenting figures only to protest and criticise the PM's appeal rather than extending relief to the people.

"Maharashtra govt imposes Rs 32.15/ltr on petrol & Congress-ruled Rajasthan Rs 29.10 But BJP ruled Uttarakhand levies only Rs 14.51 & Uttar Pradesh Rs 16.50. Protests cannot challenge facts," Puri said in his tweet.

"BJP-ruled states have a VAT on petrol and diesel in the range of Rs 14.50 to Rs 17.50 /ltr, while taxes levied by states ruled by other parties are in the range of Rs 26 to Rs 32 /ltr. The difference is clear. Their intent is only to protest & criticise, not extend relief to the people," the petroleum minister added.

Puri launched a scathing attack on Haryana Congress leader Deepender Hooda who had said that BJP-ruled Haryana charges the highest VAT in the country.

Puri said, "Petrol will be cheaper if opposition ruled states cut taxes on fuel instead of imported liquor! Truth hurts, but facts speak for themselves. 18% VAT on petrol and 16% on diesel in Haryana are among the lowest. An aspiring leader from the state protests against these, but is silent on Rajasthan ruled by his own party which imposes 31.08% + Rs 1500 /KL cess- among the highest in the country!"

Puri's comments were also aimed at Rajasthan CM Ashok Gehlot who had accused PM Modi of misleading fellow countrymen by not telling the truth. He said that the Rajasthan government had twice cut the state’s VAT on fuel products in the past six months, sacrificing an annual revenue loss of about Rs 6,300 crore.

"During the tenure of the UPA government, the price of crude oil was USD 100 per barrel but, petrol was not allowed to be costlier, the average price of crude oil in the international market has been USD 61 per barrel," Gehlot had said.

On the protest by Maharashtra, Puri said that the Maharashtra government has collected Rs 79,412 crore as fuel taxes since 2018 and is expected to collect Rs 33,000 crore this year. (Adding up to a whopping Rs 1,12,757 crore). "Why did it not reduce VAT on petrol & diesel to provide relief to people?" the minister asked.

Earlier, Maharashtra Chief Minister Uddhav Thackeray had issued a statement saying that it is not correct to say fuel prices are going up because of the states’ VAT, as there has been no recent change in states’ VAT. At the same time, Thackeray announced his cabinet’s decision to bring forward a proposal to cut taxes on fuel by Re 1 per litre.

West Bengal CM Mamata Banerjee wondered why the Prime Minister choose to raise the issue at a meeting of Chief Ministers convened to discuss the rising number of COVID-19 cases. She also pointed out that Modi Government had raised Rs. 17,31,242 crores through excise collection on petroleum products, from which only 25% was distributed among states.

Congress, in particular, was quick with its attack on PM Modi. The party said Mr Modi’s remarks were ‘irresponsible’ and did not befit the Prime Minister’s office.

Congress leader Pawan Khera enquired about accountability on Rs 27 lakh crores collected in central excise in the past eight years by the Modi government.

Telangana CM K Chandrasekhar Rao, popularly known as KCR, said, “The PM should feel ashamed for advising states to cut taxes. Why can’t the centre slash the taxes instead of asking states?”

Kerala’s Finance Minister T N Balagopal said PM Modi’s stand was misleading, and instead of asking resource-starved states to slash their limited source of income, the centre should stop collecting cess and surcharge on petrol and diesel. He also said that Kerala has not raised the sales tax on fuel products in the past six years.

Late in the evening, on Wednesday, talking to media in Delhi, Information and Broadcasting Minister Anurag Thakur, welcoming the appeal made by Prime Minister to states, urged opposition ruled states to cut down VAT, as BJP ruled states have already reduced taxes on petroleum products a few months ago to provide relief to the common public.