Bengal will lose ₹642 crore revenue due to Centre’s cut in fuel prices: Mamata

West Bengal Chief Minister Mamata Banerjee said her state will lose revenue of ₹642.17 crore due to the cut in excise duty on petrol and diesel by the Centre.

Banerjee’s claim contradicted Union Finance Minister Nirmala Sitharaman’s assertion on Sunday that the entire burden of the tax cuts will be borne by the Centre.

Addressing a press conference on Monday evening, Banerjee said the reduction in excise duty on petrol by ₹8 per litre and diesel by ₹6, will lower the devolution of taxes to Bengal by ₹273.8 crore and ₹368.37 crore respectively.

“States are also bearing the burden of the excise duty cut. The centre should have reduced the cess, which is not shared with the states. But it did not go for that….. This is the way burden is passed on states,” she added.

The state share on the ₹8 cut on petrol is ₹1.80 per litre while it is ₹1.30 per litre out of the ₹6 slashed on diesel.

She further pointed out that her government is already providing ₹1-a-litre rebate on petrol and diesel, which again lead to a revenue loss of another ₹500 crore.

“Thus, the total revenue loss of the state will be ₹1,142 crore,” she added.

Ever since the Centre has reduced the excise duty on petrol and diesel on Saturday, there has been demands from certain quarters in the BJP for the states to follow suit.

“Some people are citing that so and so states have reduced the prices…But do we (non-BJP states) get as much financial assistance from the Centre as the BJP-ruled states get. We don’t even get our dues,” she added.