Stop blaming States, scrap cess on fuel: KTR tells Centre

He reminded that Telangana had not increased the value added tax (VAT) on fuel since 2014.

Hyderabad: Lashing out at the BJP government at the Centre for blaming States for rising fuel prices, BRS working president and Industries Minister KT Rama Rao said the Centre should scrap cess on petrol and diesel to enable States supply them at Rs.70 and Rs.60 per litre respectively. He reminded that Telangana had not increased the value added tax (VAT) on fuel since 2014.

During Question Hour in the Lok Sabha on Thursday, union Petroleum Minister Hardeep Singh Puri had said that despite the rising crude oil prices in the international market over the last two years, the retail prices of petrol and diesel had increased only marginally in India. Stating that the Centre lowered the excise duty twice during November 2021 to May 2022, he went on to blame the non-BJP-ruled six States for not reducing the value added tax (VAT) on the fuel.

“If the governments of West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala and Jharkhand reduce VAT on fuel, the prices of petrol and diesel will reduce for consumers in these States. People in these States have to pay more because their State governments continue to levy heavy VAT,” he said.
However, Rama Rao responded sharply and lashed out at the Centre for blaming the States for current fuel prices. He said fuel prices had shot up only because of the NDA government.

“Name-calling states for not reducing VAT even though we NEVER increased it; is this the co-operative federalism PM Modi Ji talks about? #Telangana hasn’t increased VAT on fuel since 2014 & rounded off only once, (sic)” he tweeted.

Dear Puri Ji,

Fuel prices have shot up only because of NPA govt

Name-calling states for not reducing VAT even though we NEVER increased it; is this the co-operative federalism PM Modi Ji talks about?#Telangana hasn’t increased VAT on fuel since 2014 & rounded off only once https://t.co/zmecWoKTtB

— KTR (@KTRTRS) December 15, 2022

Further, the BRS working president reminded that the States were not getting 41 per cent of their rightful share in the Central revenue due to the cess imposed by the NDA government. He said the union government has already collected more than Rs.30 lakh crore in the form of cess and was not sharing it with the States.

“Please scrap the cess so we can give Petrol at Rs 70, Diesel at Rs 60 & provide relief to all Indians,(sic)” he added.