Mamata Banerjee hits out at PM Narendra Modi, says ‘Centre must reduce tax on ATF to bring down airfares’

Kolkata: Amid the ongoing war of words over high VAT on fuel prices in non-BJP states, West Bengal Chief Minister Mamata Banerjee on Thursday demanded the Centre to reduce tax on Aviation Turbine Fuel (ATF) to bring down airfares. She also hit out at Prime Minister Narendra Modi for putting the entire blame on states for rising fuel prices.

She claimed that the Centre wanted to shrug off its responsibility in reducing the prices of fuel and expressed apprehensions that the Modi administration would soon raise the prices again. The TMC supremo also demanded that the central government immediately slash the price of domestic LPG cylinders by at least Rs 300. 

Through a series of tweets, the TMC chief said, “instead of pointing fingers at states, the GOI should reduce its customs duty (@ 5%), additional customs duty (@ 11%) & excise duty (11%) on ATF to bring down airfares.”

 

Instead of pointing fingers at states, GOI should reduce its customs duty(@ 5%), addl customs duty(@ 11%) & excise duty (11%) on ATF to bring down air fares. (1/3)

— Mamata Banerjee (@MamataOfficial) April 28, 2022

 

In another tweet, she said that the Bengal govt has exempted taxes on ATF at Bagdogra and Andal airports, and takes only 1% on RCS Udan flights at Kolkata, 5% on small aircraft and 12.5% for all airlines commencing ops since 2012-13.

 

We in GOWB have exempted taxes on ATF at Bagdogra and Andal airports, take only 1% on RCS Udan flights at Kolkata, 5% on small aircrafts and 12.5% for all airlines commecing ops since 2012-13. (2/3) — Mamata Banerjee (@MamataOfficial) April 28, 2022

 

She added that the "Bengal govt has been proactive in slashing all levies  to bring down airfares, while GoI is preaching free sermons without practising them."

The reactions from the West Bengal Chief Minister came a day after PM Modi flagged higher fuel prices in opposition-ruled states such as Maharashtra, Kerala and West Bengal and asked the state governments to reduce VAT on them for the benefit of the common man. 

The PM reportedly said this during his virtual interaction with chief ministers on the emerging Covid-19 situation in the country on Wednesday.

"I believe that there was no Covid agenda yesterday. The real agenda was to blame the state governments (for high prices of fuel). In the coming days, they are planning to hike the prices of petrol and diesel further. That is the reason they are trying to shrug off the responsibilities," Banerjee said.

The Bengal CM told reporters at the state secretariat that it is easy for the Centre not to put the extra burden on people as it has earned over Rs 17.31 lakh crore from taxes on petrol and diesel between 2014 and 2021. 

The TMC boss claimed that the Centre has raised the prices of petrol and diesel at least 14 times in the past few months and held the state governments responsible for the high prices. 

"I believe the Centre must reduce the price of domestic gas cylinders by at least Rs 300 immediately. They also must reduce the prices of petrol and diesel," she said.

Wondering why the Centre had not reduced fuel prices when there was a drop in crude prices in the international market, Banerjee alleged that the revenue collected from taxes was used for different works of the BJP, masquerading them as government works.

Asked whether she along with the CMs of non-BJP ruled states would write to the Centre protesting against the hike in fuel prices, Banerjee said, "What's the point? They do not respond to letters."

Hours after meeting on Wednesday, Banerjee had said that her government has spent Rs 1,500 crore in the last three years to subsidise petrol and diesel prices in the state. The CM had also said that the Centre owed the West Bengal government Rs 97,000 crore, and once half of that amount gets cleared, she would reduce the taxes.