'Cut taxes on fuel, not imported liquor': Petroleum minister slams non-BJP ruled states

Stating that aviation turbine fuel constitutes 40 per cent of an airline's operational cost, Puri -- in a series of tweets -- questioned why there was no decline in the air ticket prices.

Cut taxes on fuel, not imported liquor: Hardeep Singh Puri slams non-BJP ruled states

Anish Kumar

New Delhi, First Published Apr 28, 2022, 9:17 PM IST | Last Updated Apr 28, 2022, 9:17 PM IST

Hours after accusing the non-BJP ruled states of imposing high Value Added Tax on fuel prices, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday once again slammed them for steep air fares.

Stating that aviation turbine fuel constitutes 40 per cent of an airline's operational cost, Puri -- in a series of tweets -- questioned why there was no decline in the air ticket prices.

Highlighting the charges that the opposition-ruled states have levied, the minister said, "Aviation Turbine Fuel constitutes about 40% of the cost of airline operations. But West Bengal, Maharashtra and Delhi impose massive 25%+ VAT on ATF while the BJP states UP, Nagaland and UT of J&K charge just 1%."

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The minister termed the row as 'hypocrisy' of opposition-ruled states and said that Prime Minister Modi ensures affordable air travel to common citizens but 'these states create impediments'.

Puri also added, "They manufacture protests against 'oil prices' but fleece the people to fill their coffers."

The controversy erupted after the prime minister called for reduction of VAT in the national interests. PM Modi had also asked them work in the spirit of cooperative federalism in this time of global crisis.

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He drew criticism from Maharashtra and West Bengal with their chief ministers accusing the Centre of 'step-motherly' treatment.

Maharashtra Chief Minister Uddhav Thackeray said that the central government owed Rs 26,500 crore to the state. He also added that the states are not responsible for the rise in prices of petrol and diesel.

West Bengal Chief Minister Mamata Banerjee asked for release of pending dues and said that her government would reduce the VAT on the petroleum products more than BJP-ruled states.

On energy prices, the petroleum and natural gas minister said, "Truth hurts, but facts speak for themselves. 18% VAT on petrol & 16% on diesel in Haryana among lowest. An aspiring leader from the state protests against these, but is silent on Rajasthan ruled by his own party which imposes 31.08% + Rs 1500/KL cess -- among the highest in country!"

He also shared the statistics of his party's government in states and said, "BJP-ruled states have a VAT on petrol and diesel in the range of Rs 14.50 to Rs 17.50/ltr, while taxes levied by states ruled by other parties are in the range of Rs 26 to Rs 32/ltr. The difference is clear. Their intent is only to protest & criticise, not extend relief to the people."

These tweets came in the wake of former Congress president Rahul Gandhi's Twitter post in which he lambasted the government over the surging fuel prices.

Rahul Gandhi had tweeted, 'High Fuel prices -- blame states Coal shortage -- blame states Oxygen shortage -- blame states 68% of all fuel taxes are taken by the Centre. Yet, the PM abdicates responsibility. Modi's Federalism is not cooperative. It is coercive."

Puri also received flak from senior Shiv Sena leader and Rajya Sabha MP Priyanka Chaturvedi.

"Maharashtra's contribution through direct tax: 38.3% GST: 15% GST dues owed to the state: Rs 26500 crore Centre yet to give Rs 78,704 crore GST compensation to states for FY22 Central Excise Tax Collection: 27 lakh crore truth hurts, facts speak indeed Need we say more, Sir?," Chaturvedi tweeted in response to the minister.

For Telanagna, Puri said, "Imposes one of the highest VAT on Petrol & diesel -- 35.20% on petrol & 27% on diesel. State govt has collected Rs 56,020 cr as VAT from 2014 to 2021. Projected to mop up Rs 13,315 cr in 2021-22. Adds up to a huge Rs 69,334 cr. Where has it gone?"

"Petrol will be cheaper if opposition ruled states cut taxes on fuel instead of imported liquor! Maharashtra govt imposes Rs 32.15/ltr on petrol & Congress ruled Rajasthan Rs 29.10 But BJP ruled Uttarakhand levies only Rs 14.51 & Uttar Pradesh Rs 16.50 Protests cannot challenge facts!"

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