Guj dy CM dares Cong to slash VAT in Karnataka and Punjab

The BJP government in Gujarat Tuesday dared the Congress to slash the Value Added Tax (VAT) on fuel in opposition party-ruled Karnataka and Punjab.

Gujanart Deputy Chief Minister Nitin Patel said the BJP government had cut down the VAT on petrol and diesel by 4 per cent ahead of the state Assembly elections last year, much before states like Andhra Pradesh have done.

The Narendra Modi government is drawing a flak for rising prices of fuel in the country.

Hitting out at the Congress for observing 'Bharat bandh' against spiralling prices of fuel on Monday, Patel dared the opposition party to reduce VAT in Karnataka and Punjab.

The Congress is a ruling party in Karnataka--where it is in alliance with the JD (S)--- and in Punjab.

"The Congress had staged protests yesterday over the issue of fuel prices. I want to remind them that Gujarat was the first state in the country to reduce the VAT on petrol and diesel. We took that decision to give a respite to citizens ahead of the assembly polls last year," said Patel who handles Finance ministry.

He was addressing a gathering of Bhartiya Janata Yuva Morcha (BJYM) in Ahmedabad.

"Gujarat had slashed VAT by 4 per cent much before states like Andhra Pradesh did it recently. We are now charging only 20 per cent tax whereas the rate of VAT in Congress-ruled states stood at 25 to 30 per cent," Patel said.