PM Modi's acche-din moves washed-out in MP

BHOPAL: What Modi proposes, Shivraj disposes. The NarendraModi Union government recently accepted recommendations to ban the sale of unpacked, loose cigarettes to restrain smoking and therefore arrest tobacco-related cancer diseases. The matter was placed before Parliament by health minister JP Nadda. But here in Madhya Pradesh, the Shivraj Singh Chouhan state government on Tuesday decreased VAT on cigarettes by 14 %.And hours after petrol rates dropped on December 15 midnight by Rs 2.51, the Madhya Pradesh government hiked VAT on petrol and diesel by 4%.
Minister for urban administration Kailash Vijayavargiya defended, "Taxes on cigarettes have been slashed because we are losing out on revenue to neighbouring states. The government raised taxes on cigarettes to 27% but we found that revenue from its sale dropped drastically. Upon investigation it was found that people were buying cigarettes from neighbouring states where taxes are much lower. While we are losing on VAT, the neighbouring states were earning increased revenue. That is the main reason why this decision has been taken because we cannot afford to lose out on revenue."
Vijayavargiya specified that majority of ministers in the state cabinet do not consume either liquor or smoke cigarettes. "I can vouch for the chief minister, myself and many of my cabinet colleagues that none of us are to benefit if prices of cigarettes went down. I don't drink, smoke and have never touched a beer bottle in my life," he said.
Regarding hike in petrol prices, he explained, "Petrol and diesel are a huge source of revenue for the state government. As petrol prices dropped for the sixth-time since August, the state lost Rs 600 crore of revenue. We need revenue to run a government and in Madhya Pradesh there is no other main source of revenue generation. Other states have other sources of revenue generation like Maharashtra has a port. For development of the state, the finance department has to disperse funds and that comes from taxation. If we don't have enough revenue, development works will stop."
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