CHENNAI: With prices of petrol and diesel touching record highs, Fisheries Minister D Jayakumar on Monday reiterated the State government’s long-time policy not to cut VAT on these products since they form a key part of the State’s Own Tax Revenue (SOTR). Answering a question in this regard, the minister said, “The State extends benefits and sops worth Rs 77,000 crore to various segments, with salary of government employees constituting 70 per cent of its expenditure. The SOTR is being used for various social security schemes as well as infrastructure development.”
“The State’s own source of income is primarily from petroleum products and liquor meant for human consumption ...these are revenue-generating sources and we cannot afford to lose them. So, this government will follow the policy of the late Chief Minister, J Jayalalithaa, in this regard,” Jayakumar said. On Sunday, fuel rates touched a record high as oil PSUs passed on four weeks of relentless rise in international crude prices to consumers. As on Monday, the cost of petrol in Chennai is `79.47 per litre while that of diesel is Rs 71.59.