Chennai: Deputy Chief Minister O. Panneerselvam has assured to take up the issue of reducing the prices of petrol and diesel with Chief Minister Edappadi K. Palaniswami and make a decision “according to the situation.”
Responding to the opposition DMK plea for revising VAT on fuel so as to lessen the burden on the common man, Mr Panneerselvam said the situation in Tamil Nadu could not be likened with that in neighbouring Kerala.
Nevertheless, he would discuss this issue with the Chief Minister and a decision would be taken “according to the situation”, he said.
Mr Panneerselvam, who holds the Finance portfolio, said the fund allocation to Tamil Nadu during the Fourteenth Finance Commission period declined and the State’s revenue deficit stood at Rs 18,370 crore in 2017-18. The estimated revenue deficit during 2018 – 19 is Rs 19,374 crore. Besides, the State has to fund several welfare schemes. “Therefore, the situation in Kerala is different from that in our State. We have to carefully analyse if we can effect a tax cut like Kerala,” he emphasised.
Elaborating further Mr Panneerselvam said, Kerala revised VAT on petrol from the earlier 31.8 per cent to 30.11 per cent from June 1 while for diesel it came down from 24.5 per cent to 22.77 per cent besides additional cess was levied. But in Tamil Nadu, VAT on petrol and diesel was 34 per cent and 25 per cent respectively, and there was no additional cess as in Kerala. Following tax revision, price of a litre petrol in Kerala as of June 5 was Rs 81.01 while diesel cost Rs 73.76. However, the retail price of one litre petrol in Chennai is Rs 80.84 and diesel Rs 72.76. Neighbouring Andhra Pradesh and Telangana too levied more VAT on petrol and diesel, Mr Panneerselvam said and stated that the prices were lower in TN.
Raising the issue DMK working president M.K. Stalin said the prices of petrol and diesel skyrocketed in TN and they severely affected the common man. He demanded the state government to reduce tax on fuel.
