Chennai: The DMK government in Tamil Nadu on Friday announced a tax cut of Rs three on petrol per litre and held the Centre responsible for increase in the cost of fuel and said the onus of providing relief to end consumers lay with the union government.
Finance Minister Palanivel Thiaga Rajan, presenting the Revised Budget for 2021-22 to the Assembly, announced the tax cut.
“I am happy to inform the House that this government has decided to reduce the effective rate of tax on petrol by Rs 3 per litre and thereby provide major relief to the toiling working class people in the state. This measure will result in a loss of revenue of Rs.1,160 crore a year,” the Finance Minister said.
Thiaga Rajan, referring to the white paper on the state’s fiscal situation he released days ago, said it listed many ways that marked a dilution of the spirit of federalism.
“Nowhere is this dilution of the spirit of federalism more apparent than in the taxation of petrol and diesel at the…