The MVA and the BJP disagree on lowering the VAT on gasoline and diesel

by Web Desk | Published: 23 May 2022

BMC Elections 2022
The Maharashtra State Government's announcement on Monday to decrease VAT on fuel by Rs 2.08 and diesel by Rs 1.44 per litre ignited a new struggle between the Maha Vikas Aghadi and the BJP. The MVA partners, including the Shiv Sena, NCP, and Congress, fiercely defended the government's move, but the finance department stated it would result in a Rs 2,500 crore income loss for the state government. However, opposition leader Devendra Fadnavis (BJP) called it "total deceit" and said the state's ruling dispensation should immediately cut petrol rates to stop "fooling the people."
He highlighted that the price decrease claimed by the state administration is a natural effect of the Centre's decision to reduce excise duty on petrol. "VAT on petrol in Mumbai, Thane, Navi Mumbai, Amravati, and Aurangabad was dropped to Rs 30.82 from Rs 32.90 per litre, and on diesel to Rs 21.26 from Rs 22.70 per litre, according to a statement published by the state Finance Department. In the rest of Maharashtra, the VAT on petrol was reduced to Rs 30.80 per litre from Rs 32.80 per litre, and the VAT on diesel was reduced to Rs 19.63 from Rs 20.89 per litre. The department requested that all oil firms, as well as owners and sellers of gas stations, take note of this and levy tax accordingly.
In a jab at Fadnavis, Housing Minister and NCP leader Jitendra Awhad said it was good that the opposition leader was not speaking about Hanuman Chalisa but petrol and diesel. "Devendra Fadnavis is the state's Leader of the Opposition. "Better late than never, now Fadnavis is speaking about gas, diesel, and bad employment," he mocked.
"What MVA is doing is just an 'April Fool' act in May," Fadnavis claimed. We once again demand that MVA make an immediate decision to reduce fuel costs and provide relief to individuals, without deceiving the public." ‘’ According to Fadnavis, the state government recovers taxes on basic gasoline prices, dealer commissions, road and infrastructure development, and agriculture and infrastructure development. "So, if the Centre reduces tax on any of them, the state's tax reduces immediately," he added.
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