Deputy CM Manish Sisodia said that the state government is already running in loss and therefore cannot reduce the taxes.
New Delhi: Several Resident Welfare Associations (RWAs) and civil society groups in Delhi have urged chief minister Arvind Kejriwal to reduce VAT on petrol and diesel, claiming that the residents are suffering due to price hike.
The Central government had slashed the rate of petrol and diesel by Rs 2.50 per litre on October 4, said VK Arora, the convenor of Delhi Residents Forum. This was followed by the reduction of VAT by various states, including neighbouring Haryana and Uttar Pradesh, thus bringing relief to their residents.
The government had earlier refused to reduce VAT on the fuel price in the state despite the Centre announcing a cut of Rs 2.50 per litre on both petrol and diesel prices.
Deputy CM Manish Sisodia said that the state government is already running in loss and therefore cannot reduce the taxes. “The state believed the Centre over the implementation of GST, with the hope that Prime Minister Narendra Modi would take care of the states’ interests. But, now when the Centre says it has hiked prices of petrol and diesel by Rs 10, the profit is going to the Centre,” he said.
On September 4, the Centre had slashed the price of petrol and diesel by Rs 2.50 per litre each and directed the state governments to implement the same. Soon after the announcement, many states including Madhya Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh, Bihar and Maharashtra announced an additional concession on the fuel prices.