AIADMK, BJP ask Tamil Nadu government to cut taxes on fuel

Tamil Nadu’s ruling Dravida Munnetra Kazhagam (DMK) is under pressure from opposition parties – AIADMK and BJP – to fulfil its election promise of slashing the prices of petrol and diesel by reducing state taxes on them.

While the BJP took to the streets on Monday demanding that the DMK government follow the Centre which reduced fuel prices earlier this month, AIADMK coordinator O Panneerselvam sought to know why the Tamil Nadu government has not reduced the taxes despite over 20 state governments ruled by BJP or its allies doing so.

Tamil Nadu BJP chief K Annamalai said the party’s protests against DMK’s “unfulfilled promise” will continue till December 3 and sought to know why the party promised to reduce the price of petrol by Rs 5 and diesel by Rs 4 in March.

Though the price of petrol was reduced by Rs 3 in August, the state taxes on diesel remains the same. BJP and AIADMK mounted their attack against DMK after the Centre had on November 3 reduced the prices of petrol and diesel by Rs 5 and Rs 10 respectively.

However, Finance Minister P T R Palanivel Thiaga Rajan had on November 19 termed as “unreasonable" the Union Government’s request to state governments to reduce the state taxes on petrol and diesel.

“While the Union Government’s taxes continue to be exorbitant, it is neither fair nor feasible for the State Government to further reduce taxes. I reiterate that the sole, simple, and fair approach to improve the situation for all, is for the Union Government to reduce the levy of taxes on petrol and diesel to the rates prevailing in 2014,” he had said.

In his statement, Panneerselvam questioned Thiaga Rajan’s stand seeking to know why Tamil Nadu cannot reduce the taxes while 25 states, including Rajasthan and Punjab ruled by Congress, have effected a price reduction.

Annamalai said did not the DMK know the prevailing excise duty charged on petrol and diesel while making these “empty promises” to win an election.

“After forming government & after repeated questioning, you even asked if a date for implementing this reduction was committed in the manifesto. Reduce state VAT on petrol by at least Rs 2 and Diesel by Rs 4. Fulfil your promises instead of misguiding people of the state with 3-page rhetoric that reads like a novel,” Annamalai said in his response to Thiaga Rajan’s statement.

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