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Tamil Nadu finance minister: ‘Centre expecting states to reduce taxes neither fair nor reasonable’

by Mollie G. Tenorio on May 24, 2022 in Finance News

A Day after Union Finance Minister Nirmala Sitharaman declared reduction of excise responsibility on petrol and diesel, and questioned the states to abide by go well with, Tamil Nadu finance minister Palanivel Thiaga Rajan on Sunday mentioned it is “neither truthful nor reasonable” for the union govt to anticipate states to lower their taxes.

On Saturday, the Centre lessened the excise duty on petrol by Rs 8 for every litre, and on diesel by Rs 6 for each litre.

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In a direct reply to Sitharaman’s tweet “exhorting all state governments to employ a similar cut”, Rajan explained that “the union authorities didn’t notify, let by yourself request for any state’s view” when they amplified union taxes on fuel, citing a complete raise of Rs 23 per litre for petrol and Rs 29 for each litre for diesel because 2014. “Now, soon after rolling again ~50% of their will increase, they are exhorting states to lower. Is this federalism?” Rajan tweeted.

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On Sunday, a statement issued by Rajan’s place of work explained “It is heartening to note that the Union Authorities has ultimately heeded to the repeated requests of the Tamil Nadu authorities to reduce the taxes on petrol and diesel…”

Even before the Union Authorities had 1st decreased its taxes on petrol and diesel in November 2021, the DMK governing administration experienced minimize the VAT on Petrol, in August 2021, the statement added.

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