Last month, PTR told reporters that it was not possible to reduce VAT in the current situation, adding that central government taxes constituted a major part of the cost, and called the tax structure unjust.
“You must be wondering why we (states) cannot reduce the tax (on petrol/diesel). Out of the tax of Rs 32.90 levied, Rs 31.50 is not being shared with the states. The central government is taking it completely,” he said earlier. The announcement is shocking as the PTR in June 2021 had also said that VAT on petrol and diesel would be cut only when the state’s financial condition improves.
As part of its manifesto for the state elections earlier this year, the DMK promised that the price of petrol would be reduced by Rs 5 a liter and that of diesel by Rs 4 a litre. However, the PTR has said that some of the promises may not be fully fulfilled on an immediate basis, but will be fulfilled over time.
Petrol prices have increased for 41 days in the current fiscal, and are above Rs 100 in all metros.
(published in arrangement with The News Minute)
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