DMK govt announces tax cut of Rs three on petrol, slams Centre for high fuel cost
Chennai, Aug 13: The DMK government in Tamil Nadu on Friday announced a tax cut of Rs 3 on petrol per litre and held the Centre responsible for increase in the cost of fuel and said the onus of providing relief to end consumers lay with the union government.
Finance Minister Palanivel Thiaga Rajan, presenting the Revised Budget for 2021-22 to the Assembly, announced the tax cut.
"I am happy to inform the House that this government has decided to reduce the effective rate of tax on petrol by Rs 3 per litre and thereby provide major relief to the toiling working class people in the state. This measure will result in a loss of revenue of Rs.1,160 crore a year," the Finance Minister said.
Tamil Nadu Petroleum Dealers Association president K P Murali told PTI that in Chennai the price of petrol now is Rs 102.49 and it is sold up to a maximum of Rs 104.48 in other parts of the state. A cut of Rs 3 per litre would bring down the price commensurately in respective regions, he added.
Tamil Nadu is the first to have cut tax on petrol following the spurt in retail fuel prices since May. Before the downward revision, the state levied 15 per cent plus Rs 13.02 per litre tax on petrol, which translates into a tax of Rs 24.26 a litre.
Thiaga Rajan, referring to the white paper on the state's fiscal situation he released days ago, said it listed many ways that marked a dilution of the spirit of federalism.
"Nowhere is this dilution of the spirit of federalism more apparent than in the taxation of petrol and diesel at the pump," he said.
The overall union levies on petrol were increased from Rs.10.39 per litre in May 2014 to Rs.32.90 per litre, now.
Similarly, the levies on diesel were increased from Rs.3.57 in May 2014 to Rs.31.80.
Even as the union government's cesses and surcharges were increased, the basic union excise duty was brought down sharply. Hence, in 2020-21 even as the revenue to the union government from petrol and diesel went up by 63 per cent from the revenue in 2019-20, the share of the states declined sharply, the Minister said.
"Hence, the onus of providing relief to the final consumers of petrol and diesel lies with the union government." The Comptroller and Auditor General of India has pointed out that the union government cesses levied for a specific purpose have not been fully utilised for the intended purpose, and surcharges meant for a limited time have continued almost indefinitely.
To address such issues comprehensively and propose a new and comprehensive approach, "this government will establish an advisory council to develop a Federal Fiscal Model with renowned experts on legislation involving revenue and taxation (including GST)," he said.
Tamil Nadu has 2.63 crore two-wheelers, which has become the most popular mode of transport for the working poor and they feel the pinch of the rising cost of petrol.
The union government is solely responsible for the increase in cost of the fuel and has benefitted tremendously from the increase in taxation on petroleum products at the cost of states, he said.
Chief Minister M K Stalin "feels the pain of the working poor and the middle class," he said announcing the tax cut.
This is the first time Thiaga Rajan, a former investment banker, is tabling the annual financial statement in the House.
The DMK, among other assurances, had promised in the run-up to the April 6 Assembly polls that it would reduce prices of petrol and diesel by Rs five and Rs four respectively.
Citing such assurances, the main opposition AIADMK has been demanding that the DMK fulfil its poll promises.
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Delhi: Father, son held for killing 19-year-old woman in suspected honour killing
New Delhi (PTI): The Delhi Police has arrested a man and his son for allegedly murdering his 19-year-old daughter in west Delhi's Hari Nagar area, an official said on Friday.
The case first came to light on April 1 after a PCR call was received around 2 pm, alleging that a woman had been killed by her family members and her body was being taken for last rites, he said.
The accused, identified as Mohammad Maneer (55), a vegetable vendor, and his son Meraj Ali (19), were arrested in connection with the case, the officer said.
The victim had been in a relationship with a man from her native place for the past two years, which was opposed by her father, Maneer and brother Meraj, he said.
"When the girl did not end the relationship despite objections, the family killed her," the officer said.
On April 1, the police said that when their team reached the spot, they found that the woman's body was being taken for burial.
Acting on the input, the burial process was stopped over suspicion of honour killing.
"Police intercepted the family members and took possession of the body," he said.
Police said that the man who had made the PCR told them that the woman was in love with his cousin.
During the inquiry, police also interacted with the PCR caller, who said his cousin, a friend of the deceased, had informed him about the situation and suspected foul play, prompting him to alert the police control room.
The body of the woman was subsequently shifted to the mortuary of Deen Dayal Upadhyay Hospital for preservation and postmortem.
Police said that both the crime team and the forensic science laboratory (FSL) team were called to inspect the scene and collect evidence.
Police said that, as per the postmortem report, the cause of death was identified as smothering, indicating that the woman was suffocated.
A preliminary inquiry also revealed that the family had initiated preparations for the last rites soon after the woman's death, raising suspicion about the circumstances.
Initial investigation pointed to the family's opposition to the woman's relationship.
"The family members of the woman saw her with the man, and she was taken back home. We got to know that she was beaten up and even locked inside the house for some days," a source said.
Further investigation into the matter is underway, police added.
