Key states turn down FM Nirmala Sitharaman's proposal to cut fuel tax

Cite constraints on revenue, already hit by Covid lockdowns; 'ball in Centre's court'

Some of the key states have rejected the proposal to reduce taxes on fuel, citing revenue constraints, asking the Centre to take action on rising petrol and diesel prices.

Earlier, Finance Minister (FM) Nirmala Sitharaman had talked of a calibrated lowering of taxes on fuels by the Centre and states, while RBI Governor Shaktikanta Das also batted for Centre-state action to stem the rise in prices.

States have argued that cesses account for up to 70 per cent of the Centre’s taxes on fuel, which is not shared with states.

Petrol and diesel prices have been rising since February 9 and have seen