Jaipur: Refusing to reduce the State VAT on gasoline and diesel behind the middle of cutting each of the two fuels with RS 5 and RS 10, Rajasthan Minister of Ashok Gehlot on Saturday said the union government must reduce their excise.
The central exception reduction will automatically lead to a decrease in the Country VAT collection, Gehlot argues, amid the opposition BJP request to the state government to reduce VAT on two fuel.
Gehlot made a statement in the midst of various countries governed by non-BJP refusing to cut VAT to further reduce fuel prices after the center reduced customs for gasoline and diesel with various countries ruled by BJP.
Gehlot argues that the state government collects VAT on income collected by the central government in additional customs customs, special excise duties and CESS from gasoline, diesel and gas.
“Given inflation, the central government must carry out further reduction because the Country VAT collection will automatically reduce in the same proportion,” he tweeted.
He said with the decision of the center of November 4 to reduce excise duties, the state VAT also automatically decreased by Rs 1.8 per liter on gasoline and Rs 2.6 per liter on diesel which has led to the annual loss of Rs 1,800 Crore in the collection of state income.
At the same time, the chairman of the minister urged the Center to ask the oil company to refrain from increasing the price of gasoline and diesel every day.
“If not, after the election of the Deepawali or assembly in five states, oil companies will increase prices and make benefits from assistance provided by the central and state government to zero,” he said.
Gehlot said the central government had reduced the share used by all state governments of customs.
Even if not, there is a big decline in state revenues because of Covid’s pandemic, he argues further.
“Around RS 5,963 crores compensation GST Rajasthan has not been paid by the central government,” he added.