Progressive Taxing Needed, Vested Interest Will Stop Systemic Reform: Finance Minister Palanivel Thiaga Raja

State finance minister Palanivel Thiaga Rajan on Monday hinted at progressive tax reforms and welfare scheme distribution.

Stating that upward revision of property tax and vehicle tax was long overdue in the state, Thiaga Rajan said, “Zero tax is a meaningless statement. Our principle is collecting the right amount of tax from the right people to steer the state’s growth.

Wondering how would a government function without collecting tax, Thiaga Rajan said that it was his view to increase the taxes and the decision would be made by the Chief Minister and implemented by the ministers concerned Suggesting a complete digression from the party’s established policy of distributing welfare schemes to all, the state finance minister even referred to the Rs 4,000 per family Covid relief and said, “A few are benefitting and many are losing. The beneficiaries are resourceful. The system has been taken over by the vested interests. The vested interests oppose the reforms and engage in propaganda to stop this reform.” Have Political will; administrative skill for reforms: PTR

Asserting that the incumbent DMK government has the political will and administrative skill to reform the faulty system and streamline welfare scheme distribution, he said, “I am amazed. Sometimes my confidence is tested by the system at fault. I have a fear that if we can do it. I regained my confidence because the situation was good in 2006-11. Gujarat, Maharashtra and Karnataka did not suffer the decline. It happened here because of a lack of political will and administrative skill during the previous 10 years. If we have people’s support and understanding, we can steer the state to growth.” “Business as usual cannot continue, and our approach must fundamentally change if we are to break out of this vicious cycle of increasing debt and interest costs. On the other hand, this is an opportunity to effect “once in a generation” reforms, many of which should have been undertaken years ago by any responsible government,” the minister added.

Report, not an attempt to diluting commitments made to people

On the deadline for the reforms, he said that they were confident it can be set right before the end of the regime. Asked if the reports would mean delay in honoring its poll promises, he said, “The report is not an attempt to create a rationale for diluting or abandoning the commitments made to the people during the recently concluded elections.”