Reduce central excise: Cong's first reaction to PM Modi's comment on fuel rate cut

New Delhi, Apr 27: Congress has hit out at Prime Minister Narendra Modi after urged states to reduce VAT in "national interest" to benefit the common man and work in the spirit of cooperative federalism in this time of global crisis.

Modi raised the issue of many states not adhering to the Centre's call for reducing the Value Added Tax (VAT) on petrol and diesel after his government slashed excise duties on them in last November, and called it "injustice" to people living there and also harmful for neighbouring states.

Congress leader Pawan Khera said that Centre should reduce central excise before asking states to reduce the VAT on fuel. "He (PM Modi) earned Rs 26 lakh Cr out of central excise on petrol & diesel. Has he shared it? You didn't give the GST share to the states on time & then you ask states to further reduce VAT. He should reduce central excise and then ask others to reduce VAT, news agency ANI quotes Khera as saying.

On Wednesday, PM Modi appealed the states to pass on the benefit of fuel price reduction to people. "Centre reduced the excise duty on fuel prices last November and also requested states to reduce tax. I am not criticizing anyone but request Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand, TN to reduce VAT now and give benefits to people," he said to all state CMs during meeting on COVID situation in the country.

"I urge all states to get safety audits of all hospitals done on a priority basis to prevent fire incidents which have been increasing amid heatwave. Our response time should also be minimal," he added.