Maharashtra, West Bengal CMs accuse Centre of 'bias' after PM's fuel advice

Mumbai | Kolkata: The Maharashtra and West Bengal governments have reacted sharply to Prime Minister Narendra Modi's request on Wednesday asking states to reduce state taxes on petroleum products during a Covid review meeting with the chief ministers. Both of them accused the Centre of meting out a stepmotherly treatment and not clearing the dues it owes to the states.

Maharashtra chief minister Uddhav Thackeray retorted that it was necessary for the "people of the state to know the truth".

"Maharashtra gets only 5.5% of the central taxes (but) the state contributes as much as 38.3% to direct taxes. Maharashtra contributes 15% to the GST share of the entire country," the statement said.


"If direct taxes and GST are combined, then Maharashtra is the leading state in giving taxes. Despite that, even today, the state is waiting to get ₹26,500 crore worth of its GST revenue (from the Centre)."

The CM accused the Centre of not treating Maharashtra fairly. "During the Tauktae cyclone, the Centre helped Gujarat more than Maharashtra. While talking about co-operative federalism it is expected that the Centre treats all states in a fairer manner," Thackeray said.

He said the Centre's taxes on petroleum products were still higher than state taxes. Behind every litre of diesel, the Centre's taxes were ₹24.38, while the state taxes were at a lower ₹22.37. Similarly, in petrol, the Centre's taxes were at ₹31.58 while the state tax is at ₹32.55. "So, it is far from the truth to state that petrol and diesel are costly due to the states (levy)," the CM said in his statement.

The MVA government is, however, planning to reduce state cess by at least ₹1 to ₹2 keeping in view the approaching civic body polls and because the issue of higher state taxes could be exploited by the BJP.




Thackeray's West Bengal counterpart Mamata Banerjee also said non-BJP states like hers were being given a step-motherly treatment.

"It is unfortunate that I had to hear PM Modi's speech today during the Covid review meeting with other chief ministers. It was a one-sided speech by him. We were not allowed to speak at the meeting. The PM directly put the blame on the states for the petrol-diesel price hike. The state must reduce taxes, he said. It was a one-sided approach to tell people of the country in such a way. The PM appreciated the initiative of the five BJP-ruled states. But you give 50% more funds to these states," said Banerjee while speaking to media persons in Kolkata on Wednesday.

"There is ₹97,000 crore dues from the Centre. The Centre is not paying the amount and the PM is speaking such things in his speech," she said.

Banerjee accused the Centre of not allocating sufficient funds to states. "The burden is on the state. Please do not burden the state. From 2014 to 2021, how much revenue have you (Centre) earned from fuel prices? It is more than ₹17.3 lakh crore. The Centre has imposed various cess, including education, but the state governments do not get anything. Petrol, diesel and LPG prices have increased in the last few months."