AIADMK coordinator O. Panneerselvam on Friday urged the Tamil Nadu Chief Minister to intervene and take steps to reduce the Value Added Tax (VAT) on petrol and diesel by at least ₹2 and ₹4 a litre respectively, if not like some States that have reduced their VAT on fuel prices by ₹7 a litre.
“Though the people of Tamil Nadu expect that VAT on petrol and diesel should be reduced by by ₹7 a litre like in many States, the expectation is that the DMK government should come forward to reduce the VAT on petrol and diesel by ₹2 and ₹4 a litre respectively, since its election manifesto had assured of reducing these prices by ₹5 and ₹4 a litre, and since the party has already effected a reduction of petrol by ₹3,” Mr. Panneerselvam said in a statement.
If the DMK government came forward to reduce the VAT on petrol and diesel at these rates, Mr. Panneerselvam said, these fuels would cost ₹99.40 and ₹87.43 a litre respectively. “This would lead to reduction in the prices of essential commodities.”
“Only if the reduction on VAT is effected, will it lead to a decrease in prices of essential commodities and construction materials, among others. If not, the people of Tamil Nadu would be forced to bear the additional burden,” Mr. Panneerselvam contended.
Though the DMK said in its election manifesto that it would reduce the price of petrol and diesel by ₹5 and ₹4 a litre respectively, after coming to power, it effected a reduction of ₹3 a litre on VAT on petrol but did not reduce the tax on diesel, he pointed out.
Mr. Panneerselvam welcomed the Centre’s slashing the excise duty on petrol and diesel by ₹5 and ₹10 a litre respectively and pointed out that Assam, Goa, Gujarat, Haryana, Karnataka, Manipur, Sikkim, Tripura and the Union territory of Puducherry have reduced the VAT on petrol by ₹7 a litre. Uttarakhand has reduced the VAT on petrol and diesel by ₹2 and ₹7 a litre respectively.
Bihar effected a reduction on VAT on petrol and diesel by ₹3.20 and ₹3.90 a litre respectively, while Arunachal Pradesh effected a reduction in VAT on both fuels by ₹5.20 a litre and Madhya Pradesh reduced the VAT on these fuels by 4%. Odisha, ruled by a regional party, has reduced the VAT on petrol and diesel by ₹3 a litre, he said and contended: “While so, the silence maintained by Tamil Nadu in this regard has created a sense of dissatisfaction among the people.”
In a separate statement, AIADMK co-coordinator Edappadi K. Palaniswami on Friday also urged the DMK government to immediately reduce VAT on fuel prices.
Referring to the Central government’s slashing of excise duty, Mr. Palaniswami said many States had effected a reduction in the VAT on these fuel prices. “But this DMK government effected a reduction in the petrol prices alone, though it said in its election manifesto that it would effect a reduction of prices of both petrol and diesel.”
