BHOPAL: State finance minister Jagdish Dewda on Sunday welcomed the decision of the Union government to reduce excise duty on petrol and diesel but said that there is no proposal to reduce VAT on the two commodities in MP.
Talking to a news channel, he said that Congress should take lead in reducing VAT on petrol and diesel in states where it's in power.
On the other hand, Congress party's state media vice-president Bhupendra Gupta said that the decision to reduce excise duty on petrol and diesel has been taken in the wake of impending elections in several states and said it will only have an impact if the BJP leadership directs its state governments to reduce VAT. He demanded that the Madhya Pradesh government reduce VAT on petrol and diesel to the level of Chhattisgarh.
He further said that reducing prices of petrol and diesel by Rs 9 per litre after increasing the rates by Rs 10 per litre is like seeking pardon from a person after seriously wounding him. He further said that if the central government had reduced the excise duty on petrol and diesel a year ago, the inflation could have been controlled. If the Union government would not reduce additional cess imposed on excise duty levied on petrol and diesel, share of the states in revenue generated through excise duty on fuel would decline, he said.
Such steps may give immediate relief to the people but it won't be able to control the rising prices of essential commodities unless and until prices of petrol and diesel are brought at the level they were one year ago, he added.
