Follow Centre, reduce VAT on fuel, OPS urges State govt
AIADMK coordinator and former chief minister O Panneerselvam on Sunday said with the Centre has reduced the Excise Duty on fuel and the state government should also reduce petrol and diesel rates by decreasing the Value Added Tax (VAT) on it.
The Union government has reduced petrol and diesel prices by Rs 8 and Rs 6 per litre respectively, the AIADMK leader said in a statement and added in addition, a subsidy of Rs 200 per LPG gas cylinder was also given under Pradhan Mantri Ujjwala Yojana scheme besides reducing taxes on plastic, coal and iron prices.
Welcoming the Centre’s initiative to reduce fuel prices, Panneerselvam claimed after the Union government’s announcement the states could also reduce a maximum of Rs 9.50 per litre of petrol and up to Rs 7 per litre of diesel.
“By doing this, prices of essential commodities such as vegetables, fruits and construction-related materials will be reduced,” he said adding “similarly, service charges of taxi and auto will also be decreased besides there would be a decline in inflation.”
Pointing out after the Centre’s announcement, Kerala and Rajasthan governments have reduced the fuel prices by decreasing its VAT, the AIADMK leader said, “there is an expectation from the people here that as per the poll promise the DMK government should take steps for reducing the petrol price by Rs 2 per litre and Rs 4 for diesel per litre.”
The Deputy Opposition Leader said by reducing the fuel prices, transportation rates would be under control for students and office goers in the state. Stating that with already the prices of essential commodities have skyrocketed, Panneerselvam said at this juncture, taking into consideration of people’s welfare, the DMK government has the duty to fulfil its poll promise.
“Therefore, the Chief Minister should take steps to at least reduce petrol price by Rs 2 per litre and Rs 4 for diesel per litre,”
he noted.