Maharashtra Chief Minister Uddhav Thackeray stated on Wednesday that the Centre owes the state Rs 26,500 crore after Prime Minister Narendra Modi claimed that some states did not drop VAT on petrol and diesel despite the Union government cutting excise tax in November last year.
Thackeray further accused the Centre of treating Maharashtra like a stepmother.
During a virtual interaction with chief ministers on the nation’s emerging COVID-19 situation, PM Modi said on Wednesday that some states did not reduce VAT on petrol and diesel despite the Centre’s excise duty cut last November and had done “unfairness” to the people by not transferring the advantages of the move to them.
Modi stated that the Centre has asked states to decrease taxes and pass the savings on to residents.
Many states, including Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand, and Tamil Nadu, would not listen to the central government for various reasons, and their residents continued to bear the load, according to the Prime Minister.
Following the meeting, CM Thackeray’s office published a statement outlining the Centre’s and the state government’s portion of fuel taxes, mostly on petrol and diesel.
The Union government owes the Maharashtra government 26,500 crores. Maharashtra’s contribution to national direct tax collection is 38.3 percent, and its portion of GST (collection) is 15%, yet the Centre treats us like a stepmother, Thackeray said in a statement.