Get Rs 28,000 cr due from Centre for state to cut VAT, ruling party allies tell Annamalai

CPM state secretary K Balakrishnan on Monday asked the BJP state president K Annamalai to use his influence to release the state’s due of Rs 28,000 crore from the Centre.

He was responding to the BJP’s warning to besiege the state Secretariat if it fails to reduce the value-added tax on the fuel price as promised by the DMK in its manifesto.

“BJP government at the Centre has increased the excise duty and cess on the fuel over 17 to 18 times in the last four years. The tax was reduced only twice, but the BJP claims it as a big achievement. Why did they hike taxes in the first place?” Balakrishnan asked while addressing a joint press conference with CPI state secretary R Mutharasan and VCK president Thol Thirumavalavan here.

Noting that the DMK government in the state did not hike the VAT on the fuel but reduced the tax on petrol by Rs 3 per litre last year, he said that only when the Centre reduces the tax on fuel manifold the fuel price will come down further. “The Centre has taken away the state’s revenue and fails to provide the state’s share too. I urge BJP leader Annamalai to get the state’s share of Rs 28,000 crore pending with the Centre. If it was done, we will urge the state government to reduce the VAT on petrol and diesel,” he said.

CPI state secretary R Mutharasan recalled that the DMK government has already reduced the petrol price by Rs 3 per litre in August last year even before the Centre first reduced the taxes.

VCK chief Thirumavalavan said that his party would join hands with CPM, CPI and CPI (ML) Liberation to protest against the price hike of essential commodities and fuel price hike from May 25 to 31. From May 26 to 27, he said that the protest would be held at the district headquarters. “On May 27, he along with the Left party leaders will take part in the demonstration in Chennai,” he said.

I urge BJP leader Annamalai to get the state’s share of Rs 28,000 crore pending with the Centre. If it was done, we will urge the state government to reduce the VAT on petrol and diesel —K Balakrishnan, CPM state secretary