Chennai sources reported that with prices of petrol and diesel touching record highs, the Tamilnadu government on Monday hinted it may not cut the Value Added Tax (VAT) on these products, saying they form a key part of the state's own tax revenue (SOTR). Meanwhile the Fisheries Minister D Jayakumar said the state extends benefits and sops worth Rs 77,000 crore to various segments, with salary of government employees constituting 70% of its expenditure.
Jayakumar said "The own source of income for the state is primarily from petroleum products and liquor meant for human consumption these are revenue generating sources"? Moreover Jayakumar was responding to a question on possible VAT revision by the state government with fuel prices soaring to new heights. Fuel rates touched a record high on Sunday as oil PSUs passed on four weeks of relentless rise in international crude prices to consumers.
Moreover he said India imposes high taxes on
petroleum products and urged both the BJP-led government at the Centre and the
ruling AIADMK in Tamilnadu to cut taxes on petrol and diesel to benefit the
common man. Furthermore MNM President Kamal Hassan wondered why global trends
were being blamed for the hike while there were domestic solutions to address
the issue.
