CM denies levy on cement, questions Centre’s delay in relief funds
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Shimla, Oct 2,
Chief Minister Sukhwinder Singh Sukhu refuted the opposition’s charge that his government imposed additional local tax on cement after GST reduction, saying the BJP was misleading people to cover up the Centre’s delay in releasing Rs 1,500 crore of disaster relief to Himachal Pradesh.
He asserted that the Congress government had, in fact, lowered cement prices soon after taking office. “When we assumed charge, a bag of cement cost Rs 425. We reduced it by Rs 25 to Rs 400. No state tax has been levied on cement as claimed,” he clarified.
The Chief Minister pointed out that Himachal’s revenue base has eroded significantly since the rollout of GST in 2017. “Earlier, excise duty and VAT brought nearly Rs 4,000 crore annually from industries. That collection has shrunk to just Rs 150 crore. Adding to the strain, the Centre stopped the GST deficit grant in June 2022,” he said.
He accused BJP leaders of indulging in diversionary tactics. “Instead of ensuring that Himachal receives the promised disaster relief, they are busy creating confusion among people,” he remarked.
Also read:Dosier of Info about ACC & Ambuja Cement plants: Does Sukhu government want to take back control ?
The response came after Union Minister and BJP national president J.P. Nadda alleged that the state failed to pass on the benefit of GST reduction on cement. He said the Prime Minister had cut GST from 28% to 18%, which should have lowered prices by about Rs 30 per bag. However, he claimed the Congress government imposed an anti-dumping duty of up to Rs 16 on every 50-kg bag, forcing consumers within Himachal to pay higher rates than those in neighbouring states where locally manufactured cement sells cheaper.
Nadda also accused the government of being insensitive during a crisis, citing recent increases in water bills, higher stamp duty, a Rs 100 fee on rural water supply, and sharp hikes in electricity tariffs.
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