Congress president Mallikarjun Kharge Tuesday accused the Modi government of “squeezing the rightful share of the states” in cess on petrol and diesel.

Asserting that “despite international crude oil prices falling to a 47-month low, the Modi government, raised central excise duty on petrol and diesel by Rs 2 each,” Mr Kharge, in a post on social media handle X, said that “this year, Modi government shall earn Rs 1.47 lakh crore from total cess on petrol diesel, and a whopping Rs 28,000 crore from this Rs 2 central excise duty alone.”

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“But states, including BJP-ruled ones, would not get a single paisa from this cess, even though the states have been constantly demanding a higher share of the divisible pool from the union government,” he lamented.

Recalling that from the year 2014 till December 2024, the Modi Govt has collected Rs 38.89 lakh crore by taxing Petrol, Diesel and Petroleum products,” the Congress president said that “instead of following the model of ‘Team India’ propagated by PM Modi, the union government has passed on the burden of Rs 1 Lakh crore revenue forgone in giving tax rebate to personal income tax upto Rs 12 lakh slab announced in the Budget 2025-26.”

“Shockingly, Rs 5.7 lakh crore collected through various Cesses and surcharges since 2019-20, will remain unspent by the Modi government (till March 2026)…..This could have easily passed on to the States, but the Modi Govt is busy squeezing the rightful share of the states,” Kharge added.