AIADMK flays Centre on fuel price rise; CM says state may cut tax

Tamil Nadu Chief Minister K Palaniswami said Tuesday the state may consider reducing its taxes on petrol and diesel, as his ruling AIADMK blamed the central government for the rising fuel prices and accused it of "acting" as if it was unaware of people's problems.

A day after the Congress-led 'Bharat Bandh' on oil prices which the AIADMK did not support, a write-up in the dravidian party mouthpiece was critical of the Centre on various other issues, including depreciation of rupee and alleged "step-motherly" treatment of non-BJP ruled states.

The party wondered if such issues prompted a woman "to raise slogans against BJP state unit chief Tamilisai Soundrarajan on a flight recently".

The bandh organised by the opposition parties to protest the the spiralling prices of petroleum products was supported by AIADMK's arch-rival DMK and its allies in the state, but did not affect normal life.

Speaking to reporters in Salem, Palaniswami said the government would consider reducing the state tax on petroleum products even as he put the onus on the Centre.

"Only the Centre can reduce. The Centre is only increasing the prices, not the state (government)," he said in an apparent reference to Oil Marketing Companies' daily revision of petrol and diesel prices.

Pointing to the difficulties in fund allocation for various projects, he said: "We need sufficient funds but the government will consider the plea (on tax cut)."