Reduction of VAT on petrol prices a poll strategy: Shiv Sena

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Shiv Sena Member of Parliament Arvind Sawant on Friday slammed the central government and various Bharatiya Janata Party ruled state governments over reducing taxes on petrol and diesel prices, terming it as an election strategy and pointed out that people of the country were aware of such 'jumlas'.

"When petrol prices were Rs 117 per barrel, it was available for Rs 74 in India. Now per barrel price is Rs 84 but we are getting it at Rs 110 per litre. Petrol is so cheap (in the international market), retail prices should also be set accordingly. On the issue of states reducing taxes, you should first reduce the excise duty, automatically the prices will decrease in the state too. What your states have done is part of their election strategy. The people of India are now aware of your 'jumlas'," said MP Arvind Sawant.

He further raised the issue of transfer of funds under Goods and Service Tax (GST) by the Central government to the state governments.

"If you will give the state government's GST money, then the Maharashtra government will be able to take some more steps, it is our rightful money. Legally Rs 35,000 to 40,000 crore of GST money has to come from the central government, first give us that money and then point fingers at us," added Sawant.

In relief to consumers, the Finance Ministry on Wednesday announced a Rs 5 per litre cut in excise duty on petrol and a Rs 10 per litre cut in excise duty on diesel. Amid record-high fuel prices, this is the first cut in central excise duties in over three years.

After the central government's announcement, many BJP ruled states also declared a reduction in VAT on petrol and diesel in their own states.

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