R Krishna Das
Raipur, November 5
Following the opposition chestnut, Chhattisgarh has joined the league of states that have not cut value-added tax (VAT) on fuel following Centre’s cue.
While the BJP-ruled states have slashed the tax that will facilitate fuels to be cheaper, the opposition-ruled states are in a quandary. Just to follow the opposition dictum, the states have expressed reservations to bring down the tax that has been a major volley at present for them against the Narendra Modi government.
But experts feel that the show will not continue for long as the opposition-ruled states have to finally follow the Centre’s clue.
A senior official in the Finance Ministry told News Riveting that ultimately all states would reduce VAT under “public pressure”. States like Chhattisgarh could not afford to have much higher fuel rates than neighbouring Madhya Pradesh and Odisha, he said, adding that it holds true for other states also.
The fuel price had armed the opposition to trade political barbs but for now, the Modi government has stolen the march on reducing taxes, followed promptly by NDA-ruled states. On Thursday, petrol and diesel prices saw a huge dip as the government on Wednesday night slashed excise duty on both the fuels. While petrol price was cut down by Rs 5, diesel price went down by Rs 10 on the eve of Diwali.
Big states like Delhi, Maharashtra, Chhattisgarh, Tamil Nadu, Punjab, West Bengal, Rajasthan and Telangana are yet to announce any relief through VAT reduction. The states will be under extreme pressure as its neighbours will be selling the fuel at much cheaper price.
