“Greed of the central government”: P Chidambaram on cut in VAT for diesel and petrol

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Former Finance Minister P Chidambaram has lashed out at the Centre’s Narendra Modi government for its announcement on the cut in taxes for petrol and diesel in the aftermath of losses in the just-concluded bypolls for assembly and Lok Sabha seats.

Chidambaram took to Twitter to write, “The results of the 30 Assembly and 3 LS by-elections have produced a by-product The centre has cut excise duties on petrol and diesel!”

He added, “It is a confirmation of our charge that fuel prices are high mainly because of high taxes And our charge that high fuel taxes is because of the greed of the central government.”

This was after the Modi government on Wednesday announced it was reducing the price of petrol by Rs 5 and diesel by Rs 10 by reducing the excise duty levied on petroleum products.

This prompted the governments of at least nine BJP-ruled states to announce that they too were reducing VAT on petrol and diesel prices.

Assam Chief Minister Himanta Biswa Sarma tweeted, “Heartening to learn Central Govt decision to reduce excise duty on petrol and diesel. In consonance with the decision of Honble PM @narendramodi, I am pleased to announce that Assam Govt will also reduce VAT on petrol and diesel each by Rs 7/- with immediate effect.”

Goa Chief Minister Pramod Sawant tweeted, “The Modi Govt. has given a great Diwali gift to all Indians, by announcing reduction in Excise Duty on Petrol and Diesel. I thank the Hon’ble PM @narendramodi Ji as this decision shall give great relief to common man and help control inflation.”

Tripura Chief Minister Biplab Kumar Deb wrote on Twitter, “Following Hon’ble PM Shri @narendramodi Ji led central govt’s decision on reduction of excise duty on petrol & diesel. #Tripura govt has also decided to reduce petrol & diesel cost by ₹ 7 from tomorrow.”

Similar announcements were made by chief ministers from Karnataka, Manipur and Uttar Pradesh among others.

The BJP suffered a huge setback in the just-concluded bypolls for Lok Sabha and assembly seats. The Hindutva party lost all three assembly and the lone Lok Sabha seat of Mandi in Himachal Pradesh, where the party has been in power for many years.

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