Fuel tax: PTR blames Centre for TN’s changed stance

Since the BJP government came to power in 2014, the taxation policy adopted by the Centre led to an increased tax burden on the poor and reduced the tax burden on the rich.

Palanivel Thiaga Rajan (Photo | PTI)

MADURAI: Clearing the air on DMK’s change of stance over the inclusion of fuel under the GST ambit, Finance Minister PTR Palanivel Thiaga Rajan said the State would reconsider extending support for the inclusion of fuel in the GST ambit if the Centre drops imposition of cess on fuel. 

The DMK, as an opposition party, earlier batted for the inclusion of fuel under the GST ambit. But now as a ruling party, it rejected the Centre’s proposal for the same, during the GST Council meeting. Thiaga Rajan said, “In 2018, Stalin was all in favour of the inclusion of fuel under the GST ambit. However, the economic climate in the country has changed over the years.” He clarified DMK did not changed its opinion but when the situation changes, the stance too changes.

Since the BJP government came to power in 2014, the taxation policy adopted by the Centre led to an increased tax burden on the poor and reduced the tax burden on the rich. He went on to add while the Centre’s share of tax income from one-litre petrol and diesel stood at Rs 10 and Rs 5, respectively, in 2014, it now stands at Rs 32.9 for petrol and Rs 31 for diesel, 90 per cent of which is cess fee.