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Coercive, not co-operative: Rahul Gandhi on PM Modi’s fuel tax appeal to states

Congress leader Rahul Gandhi on Thursday slammed Prime Minister Modi’s ‘swipe’ at the states for not reducing petrol, diesel taxes and said 68% of all fuel taxes are taken by the Centre but the PM blames the state. Be it the high fuel price, coal shortage or oxygen shortage, the Centre passes the buck to the states, as Modi’s “federalism is not cooperative”, it’s “coercive”, Rahul Gandhi said.

Talking about Centre-state cooperation, PM Modi gave the example of petrol, diesel tax and said some states reduced their VAT on fuel after Centre waived the tax last year. But some states did not, which is an injustice to their people and also to the states which have reduced the tax. Naming Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala and Jharkhand, PM Modi said these states have not reduced the tax on fuel and have been earning more revenue than states like Karnataka, Gujarat which have reduced the fuel tax, thereby sacrificing their revenue.

The issue has snowballed into a massive controversy with each of the states named by PM Modi disagreeing with the claims PM Modi made. Union minister Hardeep Singh Puri countered the states and said petrol will be cheaper if opposition-ruled states cut taxes on fuel instead of imported liquor, taking a swipe at Maharashtra. “BJP ruled States have a VAT on petrol & diesel in the range of ₹14.50 to ₹17.50 /ltr, while taxes levied by states ruled by other parties are in the range of ₹26 to ₹32 /ltr. The difference is clear. Their intent is only to protest & criticise, not extend relief to the people,” the Union minister said.