DMK government to cut tax on petrol by ₹3/litre

CHENNAI: The DMK government in Tamil Nadu on Friday announced a tax cut of Rs 3 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. Tamil Nadu Petroleum Dealers Association president K P Murali said that in Chennai the price of petrol now is Rs 102.49 and it is sold up to a maximum of Rs 104.48 in other parts of the state. A cut of Rs 3 per litre would bring down the price commensurately in respective regions, he added.
Tamil Nadu is the first to have cut tax on petrol following the spurt in retail fuel prices since May. Before the downward revision, the state levied 15% plus Rs 13.02 per litre tax on petrol, which translates into a tax of Rs 24.26 a litre.