Congress leader slams Modi government for not reducing VAT on fuel
March, 09th 2012
Senior Congress leader Siddharth Patel today accused the Gujarat government of not providing relief to the people by lowering VAT on petrol and diesel.
Patel also accused Chief Minister Narendra Modi of squandering public money on the Sadbhavana Mission, merely to rectify his 'personal error'.
"The government's income from VAT on petrol and diesel has shot up by Rs 1,000 crore this year, but it is not inclined to pass on the benefits to the people of Gujarat by lowering VAT on it," said Patel, during the general discussion on state budget for 2012-13 in the Assembly.
A state levy of 23 per cent VAT on petrol and additional three per cent cess, along with 21 per cent VAT on diesel and three per cent additional cess thereon makes Gujarat one of the states where fuel is costlier.
State's income from VAT on petrol and diesel increased from Rs 2,598 crore in FY 2009-10 to Rs 4,264 crore in FY 2011-12.
Patel also alleged that the state government was reaping the benefits of foundation laid by previous governments (between 1990 to 2000) in augmenting power generation capacity.
"The electricity production between 1990 to 2000 rose by 116 per cent in Gujarat, while it had risen merely by 37 per cent in last one decade.
"The figures have exposed the tall claims of the state government of having made Gujarat a power surplus state."
Modi had recently stated that the state was expected to have around 7,000 MW of surplus power within a year or so.