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PDR Palanivel Thiagarajan, Finance Minister of Tamil Nadu
Tamil Nadu Finance Minister PDR Naidu has said that the central government, which did not even consult with the states once when it raised the tax on petrol and diesel, now expects the states to reduce the tax. Palanivel Thiagarajan said.
Excise duty on petrol on 21.05.2022 was Rs. 8 and diesel price is Rs. The Finance Minister of India has announced that it will be reduced to 6. Apart from this, when buying a cooking gas cylinder, up to 12 cylinders per year will cost Rs. He also said that 200 subsidy will be given.
The announcement was welcomed by the BJP-ruling state governments but was not supported by state governments that were not in party rule and alliances.
Tamil Nadu Finance Minister PDR Palanivel Thiagarajan has said that the central government has listened to the demands of the states in this regard. However, the Tamil Nadu Finance Minister has said that the move by the central government will not reduce the burden on the people. He has shared a detailed press release explaining their position. Its description:
It is gratifying that the Government of Tamil Nadu has finally listened to the Government of Tamil Nadu’s continuous demand for a reduction in the excise duty on petrol and diesel, which has been drastically increased by the Central Government from 2014 to 2021. Before the Government of India reduced the excise duty on petrol and diesel in November 2021, Chief Minister M.K. The Stalin-led government reduced the value added tax on petrol in August 2021. With that the people got relief at the rate of 3 rupees per liter.
Thus, the state government will receive Rs. 1,160 crore loss. However, the tax cuts were made in the midst of a financial crisis that came along the way from the previous government. During the 2006-11 regime in Tamil Nadu, the then ruling DMK government reduced taxes on petrol and diesel for the benefit of the common man. On the other hand, federal taxes on petrol have risen significantly over the past seven years. Although the revenue of the Central Government has increased manifold, the revenue of the States has not increased in proportion to it. This is because the federal government raised the cess and sub-tax on petrol and diesel while at the same time reducing the base excise tax that can be shared with the states. On 01.08.2014, the Central Government levied a tax of Rs. 9.48 per liter on diesel and Rs. 3.57 were also.
Before the federal government cuts taxes on petrol and diesel in November 2021, the federal tax on petrol, including cess and surcharges, will be Rs. 32.90 per liter on diesel and Rs. It was also 31.80. This is on petrol and diesel at Rs. 27.90 and Rs. Reduced to 21.80. At present it has been further reduced to Rs. 19.90 and Rs. 15.80.
Despite the reduction in taxes by the central government, the amount of tax on petrol will be Rs. 10.42 and Rs. 12.23 per liter on diesel. Therefore, there is a strong demand for the Central Government to reduce its taxes further. The loss was Rs 1,050 crore. The loss was further exacerbated by the recent tax cut announcement. 800 crore. This will place a huge burden and pressure on states that are already facing the cost of corona disaster relief efforts.
In the face of the precarious financial situation created by the previous government when this government (Tamil Nadu government) came to power, Govt reduced taxes on petrol for the benefit of the people within a few months of taking office, despite incurring additional costs for relief operations. Despite its limited powers, Tamil Nadu has taken drastic steps to reduce the tax burden on the people of the state. Although the federal government’s excessive tax increase has now been partially reduced, the measure continues to be high compared to 2014 rates. Therefore, it is not fair to expect states to reduce their taxes, said PDR Palanivel Rajan.
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