Chennai: Reacting to Prime Minister Narendra Modi’s criticising States like Tamilnadu for not reducing taxes on fuel, Finance Minister P T R Palanivel Thiaga Rajan said it is ‘neither fair nor feasible’ for the state government to further reduce taxes.
He suggested that the Union government revert to 2014 rates by removing the levy of cesses and surcharges. In a detailed statement, PTR said the DMK dispensation has repeatedly urged the Centre to reduce the cesses and surcharges being levied and merge them with the basic tax rates so that States get their rightful share from the proceeds of the Union taxes.
‘Given that the Union government’s taxes continue to be exorbitant, it is neither fair nor feasible for the State government to further reduce taxes. We reiterate that the sole, simple, and fair approach to improve the situation for all, is for the Union Government to remove the levy of cesses and surcharges and revert to rates that prevailed in 2014,’ he added.
Modi on Wednesday said the Centre waived the duty last year to reduce the burden of the people and then urged all states to do the same so that the benefit can be transferred to the users. ‘Some States abided by, but some States did not do. In these States, petrol, diesel is still dearer. This is, in a way, an injustice to the people of the state and also detrimental for the economy of other States,’ he added. He also said he was not criticising, but just appealing (to cut tax).