You are here: Home » PTI Stories » National » News
Business Standard

TN govt may consider reducing tax on petrol, diesel: CM

Press Trust of India  |  New Delhi 

The government Monday said it may 'consider' reducing taxes on petrol and diesel, but pointed out its spending on various initiatives, including implementation of the seventh recommendations.

When asked if his state would cut taxes on petrol and diesel, Chief Minister K Palaniswami highlighted the requirement of funds for various welfare measures.

He was speaking to reporters here after meeting to seek Central assistance for various initiatives in the state.

"In Tamil Nadu, as far as the Amma (late Jayalalithaa) government is concerned, funds are required for various departments," he noted.

While the state had recently okayed the implementation of 7th recommendation for its employees, arrears for Transport department staff was also being disbursed, he said.

"Welfare initiatives are happening in various departments. After creating the fund source, government will consider your plea," he told media when asked if his government would axe the tax on fuel.

The Centre had last week announced a Rs 2.50 a litre cut in petrol and diesel prices, factoring in excise duty reduction of Rs 1.50 per litre and asking companies to absorb another Re 1.

Many BJP- ruled states had taken a cue from this and announced tax cuts.

Earlier too, Palaniswami had said his government would consider reducing the state tax on even as he had put the onus of slashing taxes on the Centre.

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

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

On reports about firm being allotted blocks in Tamil Nadu, Palaniswami said, "any project adversely affecting people will not be allowed".

The firm's copper smelter unit in Tuticorin in the state, had earlier been ordered by the to be permanently closed following a public outcry over pollution concerns.

An anti-Sterlite protest on May 22 had turned violent, with 13 protesters being killed in police firing.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 08 2018. 16:30 IST