Modi gives special 'booster dose' to Kerala during Covid review meeting; Does Kerala will be willing to reduce petrol and diesel tax?

NEW DELHI: Prime Minister Narendra Modi on Monday lashed out at Kerala at a review meeting of Chief ministers convened to assess the Covid situation in the country. Modi sharply criticized the opposition ruling states, including Kerala, over fuel prices.

Modi alleged that despite the central government reducing fuel tax, some states were not ready for it. States like Kerala, Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu and Jharkhand are not ready to reduce taxes.

The Centre had reduced the excise duty on petrol and diesel last November in view of the crisis in the country. The Centre has also asked the states to reduce taxes. Some complied. But few states were not ready for this. For this reason, fuel prices continue to rise in these states. Modi said this would not only be an injustice to the people of the country but would also adversely affect the neighboring countries.

Modi demanded that the states to be prepared to reduce the value added tax on fuel in view of the joint governance between the states and the Centre as enshrined in the Constitution. Modi also pointed out that fuel prices are lower in states where VAT is lower. Modi said the country should work towards resolving economic issues in the current situation as if they were fighting together against Covid.

He added that it was natural for tax-cutting states to face revenue losses. Had it not been for tax cuts, Karnataka would have received an additional Rs 5,000 crore in the last six months. Modi also mentioned that Gujarat received around Rs 4,000 crore.

The Prime Minister has called for a review meeting of the Chief Ministers in the wake of the sharp rise in Covid cases in the country in the last two weeks. Modi told the gathering that the authorities need to be vigilant as the challenges related to the epidemic have not yet passed. The meeting was attended by Health Minister Veena George as the Chief Minister is abroad. The BJP-ruled states were ready to reduce fuel taxes on the instructions of the Central government. But it remains to be seen whether Kerala will be willing to reduce the value-added tax on petrol and diesel in the face of criticism from the Prime Minister.