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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Eight fruit vendors killed, ten injured as truck falls into 50-metre deep valley in Yellapura
Yellapura (PTI): At least eight persons were killed and 10 others sustained injuries when the truck in which they were travelling fell into a 50-metre-deep valley near here in the wee hours of Wednesday, a police officer said.
The victims, all fruit vendors, started from Savanur and were heading towards the Yellapura fair to sell fruits. They were traveling on the Savanur - Hubballi road when the accident occurred in a forested section, the Uttara Kannada Superintendent of Police M Narayana said.
"Around 5:30 am, the truck driver in a bid to give side to another vehicle went to the extreme left and fell into an about 50 metre deep valley," Narayana told PTI.
He added that there was no protection wall in the road in the valley.
"Eight persons were killed on the spot and two got critical injuries. The injured have been shifted to the KIMS Hospital in Hubballi," the officer said.
