PMK and DMDK call for reducing fuel VAT by TN govt

CHENNAI: After the central government reduced the fuel tax, PMK and DMDK on Sunday urged the state government to reduce the Value Added Tax (VAT) on fuel.

"At a time when the Central government has reduced the tax on fuel twice, the State government also has the duty to reduce the VAT. By reducing the fuel prices, the State government should come forward to reduce the burden of the public", PMK Founder S Ramadoss, in a tweet.

Similarly, DMDK Founder Vijayakant said that after the central government reduced the fuel tax, states like Kerala and Rajasthan have also reduced their taxes levied on fuel. Similarly, the Tamil Nadu government should also reduce the VAT.

After the central government reduced the additional excise duty on both petrol and diesel, several opposition parties in the state have urged the state government to reduce the VAT. Despite the demands, the State Finance Minister Palanivel Thiaga Rajan has made it clear that the State government is in no mood to reduce the fuel tax.

Similar to fuel tax, the Union government also announced an LPG subsidy of Rs 200 per cylinder but only for below poverty line (BPL) families. Both Ramadoss and Vijayakant have urged the central government to extend the subsidy benefits to all the LPG users.