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Party sources also refuted the opposition’s charge against the Modi government for rising fuel prices and said their costs have remained ”relatively lower” in comparison to major economies, which like India depend heavily on crude imports.
India has the second-lowest petrol and diesel prices among BRICS countries when their currencies exchange rate is adjusted with the rupee, they said, noting that Russia, where they cost less, is an oil-producing nation.
It also has the fourth-lowest petrol and fifth-lowest diesel prices among the eight ASEAN countries for which data is available, they said. Bihar, where the BJP shares power with the Janata Dal (United), and BJP-ruled Madhya Pradesh also figure in the 10 states with the highest petrol and diesel prices.
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Besides the three states, Tamil Nadu, West Bengal, Kerala and Jharkhand did not slash taxes after the Centre cut excise duty on petrol and diesel by Rs 5 and Rs 10 respectively, they said, claiming that while the Centre lost revenue of Rs 1 lakh crore a year due to the cut, the seven opposition-ruled states earned an extra Rs 11,945 crore by not reducing the tax compared to the states, mostly BJP-ruled, which imposed the cut.
The ruling party claimed that the Centre has used its revenue to fund welfare measures like free grain, which has now been extended till September, raising the expenditure to Rs 3.4 lakh crore from an earlier estimated Rs 2.6 lakh crore. It also referred to free COVID-19 vaccines administered through the government-run centres and cash transfers to poor women during the pandemic.
BJP sources also cited RBI data to reject former finance minister P Chidambaram’s criticism of the central government that its total outgo on free food grain and cash transfer to farmers and women among other heads was ”no more than Rs 2,25,000 crore” which, he alleged, was less than the annual fuel taxes collected by the Centre.
The Congress leader had said that the Centre earned Rs 26.5 lakh crore from fuel taxes alone between 2014-21.
Citing the RBI figures, a BJP leader said,”total developmental expenditure by the central government during the period 2014-22 was a whopping Rs 90.9 lakh crore. This included more than Rs 26 lakh crore in the form of capital expenditure to modernise infrastructure and create productive assets, Rs 25 lakh crore for food, fertilizer and fuel subsidies, and Rs 10 lakh crore on social services such as health, education and affordable housing.” After Modi’s meeting, the Opposition accused the Prime Minister of ”playing politics” during his meeting with chief ministers on the COVID situation by raising the issue of fuel prices and ”passing the buck” on to states to reduce VAT on petrol and diesel.
Congress chief spokesperson Randeep Surjewala attacked Modi, demanding that he give an account of the Rs 27 lakh crore ”collected” by the BJP government from tax on petrol and diesel.
The opposition’s attack came after 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 November last, and called it an ”injustice” to people living there and also harmful for neighbouring states.