(TOI)
The Centre made a case for reduction in strong for reduction in state taxes on motor fuels to arrest runaway pump prices by pointing out that VAT charged as a percentage of the price amplifies the impact of rising crude prices and fall in rupee value — the two factors responsible for the current spike in prices.
“If there is an impression it’s the Central government that is imposing too much excise duty, which is leading to fuel fuel price rise, I would like to put forward that the Centre charges only half of what the states impose. Also, the tax the Centre collects is fixed,” defence minister Nirmala Sitharaman told reporters at an interactive session at Indian Women’s Press Corps here.
