NEW DELHI: Prime Minister Narendra Modi on Wednesday urged opposition-ruled states to reduce VAT in the "national interest" to benefit the common man.
Further PM Modi urged the state government to work in the spirit of cooperative federalism in this time of global crisis.
This comes after the Centre witnessed 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 "injustice" to people living there and also harmful for neighbouring states.
The prime minister focussed a big part of his concluding remarks in his meeting with chief ministers to review the COVID-19 situation on the issue of fuel price, whose rise has been a matter of public
In his remarks, Modi cited the example of Karnataka and Gujarat, both ruled by the BJP, saying they have suffered a revenue loss of nearly Rs 5,000 crore and Rs 3,500-4,000 crore respectively by reducing VAT but they did so to help people. Their neighbouring states did not, he added.
"I am not criticising anyone but am praying to you for the welfare of people of your states…I urge you to reduce VAT now even after a delay of six months to benefit people," he said, with chief ministers of most of these states listening.
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