Prime Minister Narendra Modi’s comment that several non-BJP ruled states like Telangana, Andhra Pradesh, Kerala and Maharashtra were refusing to bring down the value added tax on petrol and diesel evoked strong reaction from the ruling Telangana Rashtra Samithi.
The TRS, at its plenary held in Hyderabad, adopted a resolution condemning the Centre’s attitude towards petrol and diesel prices.
It demanded that the Centre remove cess on fuel and bring it under the common divisive pool, so that the states would get due share in the cess.
Telangana state finance minister T Harish Rao alleged that it was the Centre which was burdening the consumers of petrol and diesel in the name of various taxes like special excise duty, additional excise duty and road cess.
“In fact, the Telangana government has not increased any taxes in the last seven years. Only in 2015, the Value Added Tax was rounded off to the nearest rupee. Yet, the Centre is asking us to forego our revenue, so that we become financially weak,” Rao said.
He said on the other hand, the Modi government has earned Rs 24 lakh crore in the form of cess from the consumers in the last seven years.
“Telangana is supposed to get Rs 54,000 crore as its share, but the Centre has denied the same in the name of cess,” Rao said.
He said the Telangana government was demanding abolition of cess and that all the excise duties be brought under divisible pool.
“The Centre should transfer whatever income it gets on petrol and diesel to the state in the form of 42 per cent devolution,” the finance minister demanded.