AIADMK coordinator and co-coordinator O. Panneerselvam and Edappadi K. Palaniswami, in separate statements on Friday, urged the DMK government to immediately reduce the Value Added Tax (VAT) on fuel prices.
Referring to the Union government’s recent slashing of excise duty on petrol and diesel by ₹5 and ₹10 respectively, Mr. Palaniswami recalled many States effecting a reduction in VAT on fuel prices. “But the DMK government has effected a reduction only in petrol prices, though it said in its election manifesto that it would effect a reduction in the prices of both petrol and diesel,” he said.
Mr. Panneerselvam urged the Chief Minister to take steps to reduce VAT on petrol and diesel by at least ₹2 and ₹4 a litre respectively, if not like some States that had reduced it by ₹7 a litre.
“Though people expect VAT on fuel to be reduced by ₹7 a litre like many other States, the DMK government should at least come forward to reduce VAT on petrol and diesel,” he said.
If the DMK government comes forward to reduce VAT at these rates, Mr. Panneerselvam said the fuels would cost ₹99.4 and ₹87.43 a litre respectively. “This will lead to a reduction in the prices of essentials,” he said.
An election issue
BJP State president K. Annamalai asked why the DMK government was silent about reducing State tax on fuel, considering the party had made it an election issue and had said the State government would reduce the taxes on fuel if the Union government reduced its taxes.
He said when the DMK was in the Opposition, it had demanded a reduction in State taxes on fuel. “Now, the Central government has reduced its taxes by ₹5 on petrol and ₹10 on diesel,” he said.
