From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Jun 17: Seeking to turn the table against the opposition BJP for its protest over the hike in petrol and diesel prices by the government, Chief Minister Siddaramaiah has accused Narendra Modi’s Central government of ‘monopolosing GST’ and depriving the State of ‘equitable share of funds’.

Addressing the media at his Home Office of Krishna in Bengaluru on Monday, he said the tax collection opportunities that were the prerogative of States are cornered by the Centre and if the Modi regime ‘had given State’s rightful share of funds to the people of Karnataka, there would be no need to raise taxes’.

At the same time, Siddaramaiah pointed out that the ‘fuel prices in our state are lower than in the BJP ruled states and other States in South India even after the recent tax hike on petrol-diesel rates’.

“If the central government had given the state's share to the people of the state, there would be no need to raise taxes,” he said.

The Chief Minister said the Modi government at the centre has ‘created an environment in which the necessity of tax increase was inevitable’ and also explained the situation created due to non-payment of the state's share.

Quoting facts and figures, he said, “After 2015, even when the price of crude oil was reduced by half in the international market, the Modi government continuously raised the price of fuel without giving the benefit to the people of the country.”

He said that the estimated revenue yield of Rs 3,000 crore collected from the increase in value added tax on petrol and diesel will be paid to the state treasury.

BJP looted Rs 1.5 lakh cr under Bommai

Attacking the BJP, he said: “The money will be allocated for people's welfare programmes and it will not go into our pockets.”

In the previous BJP government headed by Basavaraj Bommai, Siddaramaiah said: “As much as 40% of the tax money in every scheme of the state went into the pockets of BJP leaders. In this way, approximately Rs 1.5 lakh crore of the hard earned money of the people of the state have been filled in the pockets of these BJP leaders.”

“Where does the looting, corrupt, anti-people BJP leaders have the dignity to question the marginal increase in taxes for public welfare,” he asked.

“The state government is spending Rs 60,000 crore for the guarantee schemes. This amount goes to the poor and middle class of all caste-communities of the state. The current marginal increase in diesel-petrol tax will generate additional resources of only Rs 3,000 crore. But we are giving Rs 60,000 crore for guarantees.”

“Thus, BJP leader R Ashok's silly words do not make sense,” Siddaramaiah said and sarcastically said Ashok does not understand all this, nor is he capable of understanding it.”

The Chief Minister explained that the ‘objective of mobilizing resources for the development works of the state in a way that does not burden the people, petrol and diesel sales tax increased by Rs 3 per litre’.

“After the implementation of the GST system by the Central Government, the scope for resource mobilization of the state governments is limited. Central Government collects GST, taxes from sources like Income Tax, Central Excise Duty etc. The state government has no sources except registration and stamp duty, vehicle tax, sales tax on petrol, diesel and sales tax on liquor,” he said.

Siddaramaiah said the government has increased the tax by a small amount and noting that the prices of petrol and diesel in the state are low compared to other states.

The Chief Minister asserted that BJP has ‘no moral right to protest’.

“During Dr Manmohan Singh's tenure, the price of crude oil in the international market was 113 dollars. Although this price was halved in 2015, Narendra Modi did not show any concern to bring down the price and reduce the burden on the people,” he said and asked who should the BJP fight against?

“Even though Karnataka has been subjected to continuous injustice by the Modi government, BJP has not raised its voice. None of the BJP MPs have spoken on the issue when taxation is unfair. Although the 15th Finance Commission has recommended a special grant to the state, the central government has not given it.

“Union Finance Minister Nirmala Sitharaman allocated Rs 5,000 crore in the budget for Bhadra Upper Bank Project. Although it was announced that it would be provided, no money was given. Has the BJP raised its voice on these issues?” he asked.

‘Hike is not for waiving Ambani-Adani loans’

He said BJP has ‘an anti-poor, anti-Dalit attitude’.

“We had to go to court to seek compensation for drought. They have given us Rs 3,454 crore when we had asked for Rs 18,000 crores as relief.
BJP is against welfare programmes for poor, Dalits and common people.”

“The financial power of the people increases if they are given free bus travel, Rs 2000 per month? Don't they save money if free electricity is given? They did not provide extra rice when we requested them. Did anyone speak?” he questioned.

Siddaramaiah lashed out at BJP for describing the Congress government as bankrupt without any basis. “How do the opposition leaders say the government is bankrupt? Have we stopped paying anyone? Whether the programmes announced in the budget have been stopped without providing grants,” he said.

Strongly defending the hike in petrol and diesel prices, he said the Rs 3,000 crore generated from the increase goes to the welfare of the people. “Are we waiving off loans to Ambani and Adani? Not a rupee of farmers’ loan is waived. Do they have the moral right to question us,” he said.