Prime Minister Narendra Modi encouraged Opposition-ruled states to decrease VAT and cooperate “in the spirit of cooperative federalism” in this “time of global crisis,” citing high fuel prices in states that did not follow the Centre’s request to lower VAT on gasoline and diesel. These states, he claimed, were doing them an “injustice” and injuring nearby states by not handing on advantages to the citizens.
The Prime Minister stated that a proposal to cut VAT was made in November, but states like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Jharkhand “for some reason” did not comply.
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