Center should release GST offset for states to cut VAT on fuel, says Sharad Pawar.
After the central government reduced the excise tax on gasoline and diesel, the head of the Nationalist Congress Party (NCP), Sharad Pawar, demanded on Friday the release of GST compensation to states to reduce the tax on fuel.
His comments come days after the central government lowered the excise tax on gasoline and diesel.
In a statement, Sharad Pawar said: “If the Center disburses GST compensation to all states, then it is possible for state governments to reduce VAT on gasoline and diesel and implement other welfare plans.”
On Wednesday, the Finance Ministry had announced cuts to excise duties on gasoline and diesel prices at Rs 5 and Rs 10 per liter, respectively. With fuel prices hitting record highs, this is the first cut in central excise duties in more than three years.
Several BJP-governed states have announced additional cuts after the Center’s announcement on Wednesday.
These include Karnataka, Puducherry, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Tripura, Assam, Sikkim, Bihar, Odisha, Madhya Pradesh, Goa, Gujarat, Dadra & Nagar Haveli, Daman & Diu, Chandigarh, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Uttar Pradesh, and Ladakh.
Rajasthan, Punjab, Chhattisgarh, Maharashtra, Jharkhand and Tamil Nadu, Delhi, West Bengal, Kerala, Telengana and Andhra Pradesh have yet to announce additional benefits.
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