Tough to reduce fuel tax, says PTR

State Finance Minister Palanivel Thiaga Rajan, on Friday, said that it is not feasible for the state govt to reduce the tax on fuel. Tamil Nadu levies ad valorem taxes after union govt levies the taxes and the reduction in fuel taxes by Rs 5 on petrol and Rs 10 for diesel has resulted in a loss of Rs 1,050 crore for the state govt per annum as the state govt has to reduce the tax by further Rs 0.65 per liter of petrol and Rs 1.1 per liter of diesel.

While the union govt continues to levy exorbitant rates of taxes it is neither fair nor feasible for the state govt to further reduce taxes”, said the Finance Minister, in a statement.