During a virtual interaction with chief ministers on the emerging COVID-19 situation in the country, Prime Minister Narendra Modi on Wednesday said some states did not reduce Value Added Tax (VAT) on petrol and diesel despite the excise duty cut by the Centre last November.
He called it "injustice" to people living there and also harmful for the neighbouring states.
Modi said the Centre had urged states to reduce taxes and transfer the benefit to the citizens.
Many states such as Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu for some reason or the other did not listen to the central government and the citizens of those states continued to be burdened, the PM said.
Meanwhile, the Opposition hit back at PM Modi.
West Bengal Chief Minister Mamata Banerjee accused Modi of favouring the BJP-ruled states. She also added that the Centre owes Rs 97,000 cr to her state.
Mamata said, "He (PM in today's meeting with CMs) left the matter of rising prices of petrol, diesel & domestic gas on states, that states will have to slash prices. How will states do it? You increased prices. Did you see your income? You said one-sided things to people. Misleading!"
"You appreciated 5 BJP-ruled states & you give them a lot of money. They are given more money than us for a lot of schemes. You give them 50% more. So, it is not a big deal for them to give up Rs 4,000 crores-5,000 crores, you give them Rs 40,000 crores," she added.
Mamata said her government has suffered a loss of Rs 1500 cr as there is a subsidy of Re 1 on petrol in Bengal from the past three years.
"As far as my state is concerned, you should know that for past 3 yrs I give a subsidy of Re 1 on petrol, our govt suffered a loss of Rs 1.5 thousand cr. You didn't say anything on it. You owe us Rs 97,000 cr. Right now GoI is taxing 25% more compared to WB Govt on petrol," she said.
"We say that tax revenue should be 50% each for centre and states. But they did not agree. They collect 75%. How will the states run? I would like to tell the PM to see that instead of giving burden on the states, he should look around," she added.
Earlier, Maharashtra Chief Minister Uddhav Thackeray said the Centre owed Rs 26,500 crore to the state.
Thackeray also accused the Centre of a step-motherly treatment to Maharashtra and that the state government was not responsible for the rise in prices of petrol and diesel.
Congress chief spokesperson Randeep Surjewala attacked Modi, demanding that he give an account of the Rs 27 lakh crore "collected" by the BJP government from tax on petrol and diesel.
"Modi ji, No criticism, No distractions, No Jumlas! Please give an account of ?27,00,00,00,00,00,00 (?27 Lakh Crore) collected by BJP Govt from Tax on Petrol & Diesel," Surjewala said.
He said that on May 26, 2014, when PM Modi assumed charge, crude oil was USD 108 per barrel, but petrol and diesel were priced at Rs 71.41 and Rs 55.49 per litre, while today, crude oil is USD 100.20 per barrel, but the petrol and diesel prices have been increased to Rs 105.41/litre and Rs 96.67/litre respectively in Delhi.
"We will urge all states to decrease VAT on Petrol/Diesel to pre-May 2014 level. Please admit BJP Govt earned Rs 27 Lakh Crore from Petrol/Diesel while all states collectively received about 16.5 Lakh Crore. Central Govt revenue from Petrol/Diesel has doubled in 8 years," he said in a series of tweets.
Shiv Sena leader Priyanka Chaturvedi also slammed the prime minister, alleging that he made the "COVID meeting about politics".
"The central government has earned 26 lakh Crore out of central excise on fuel, increased 18 times even when oil prices hit rock bottom. The GST share to states still owed, compensation component to state done away with and now pointing fingers," she tweeted.
(With PTI inputs)
