CHENNAI: State Finance Minister Palanivel Thiagarajan on Sunday said it is currently not possible to decrease fuel prices, and blamed the Central government, saying it tripled the tax per litre from Rs 10.39 in 2014 to Rs 32.90 now.
The DMK had promised to reduce fuel prices in its election manifesto. In the current situation, it is impossible to reduce VAT on petrol and diesel, the minister said.
“In the name of cess and surcharge, the Union government is keeping all the money to itself. Earlier, about 45 per cent of the tax was the State’s share. However, the Central government is collecting cess and not even giving one per cent to States. Of the Rs 32.90 tax, Rs 31.50 is being kept by the Union government,” he added.
As the result, the Union government’s share of tax increased from Rs 2,40,000 crore in 2019-20 to Rs 3,90,000 crore in 2020-21, the minister pointed out, adding that according to the 14th Finance Commission formula, the State must still get Rs 336 crore.