Centre and states need to act in coordination to reduce tax on fuel, says RBI governor© indianexpress.com

Centre and states need to act in coordination to reduce tax on fuel, says RBI governor

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There is no proposal to reduce tax on petrol and diesel as revenue is needed to ensure betterment of health services and other development works due to the COVID-19 pandemic, the Uttar Pradesh government said on February 25.

Replying to Samajwadi Party (SP) member Narendra Verma during the question hour in the State Assembly, Cabinet Minister Satish Mahana said, “There is no proposal under consideration to reduce tax on petrol and diesel in view of the resources and financial requirements for improving health facilities and other developmental works keeping in mind the COVID-19 pandemic.”

Currently, consumers in Uttar Pradesh are getting diesel at a lower price than the States of Andhra Pradesh, Rajasthan, Madhya Pradesh, Telangana, Odisha, Maharashtra, Chhattisgarh, Gujarat, Bihar, Tamil Nadu, Jharkhand, West Bengal, Punjab and Uttarakhand, he said. Similarly, petrol is available at lower prices here as compared to Madhya Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Telangana, Bihar, Tamil Nadu, West Bengal, Punjab, Orissa, Delhi, Uttarakhand and Chhattisgarh, he added.