Stalin, PTR slam PM Modi’s remarks on fuel prices

CHENNAI: Chief Minister MK Stalin and Finance Minister Palanivel Thiaga Rajan, speaking in Assembly on Thursday, strongly rebutted the charges made by Prime Minister Narendra Modi blaming the States for high fuel prices.

On the floor of the House, Stalin responded to an issue raised by Congress floor leader K Selvaperunthagai during Zero Hour and slammed the PM’s contention that the prices of petrol and diesel could not be brought down just because certain States had failed to reduce the VAT.

Stalin said, since 2014, the Union government has not passed on the surplus revenue accrued due to the slash in crude oil price, instead keeping the entire revenue for itself. Also, the Union government reduced the excise duty on fuel as that revenue has to be shared with States, and by doing so appropriated States’ income.

“On the other hand, since the cess and surcharge on fuel need not be shared with the States, the Union government hiked these taxes massively and earned lakhs of crores of rupees, leaving a huge burden on people. Just ahead of polls in some States, the Union government, as a token gesture, reduced the taxes on fuels. But once the elections were over, they hiked the fuel prices manifold,” the CM charged.

Since PM assumed office in 2014, tax on petrol hiked threefold, says Thiaga Rajan

On the other hand, the TN government, despite its critical financial position, reduced the State tax on petrol for the benefit of the people, he said. Later, in a series of tweets, Stalin reiterated that the DMK government had reduced the fuel prices after winning elections unlike the BJP (union) government “which has the habit of increasing fuel prices as soon as elections are over.”

“The politically aware people of TN are not oblivious to these simple facts and it’s only a matter of time before the rest of India sees through the bogus claims of the BJP government,” he added. “Having made hay out of the decline of crude oil prices and devoured Rs 26 lakh crore from fuel prices in the last eight years, to blame the oppositionruled States for the steep hike in fuel prices is akin to trying to cover a pumpkin in a handful of rice,” the CM tweeted.

Meanwhile, the Finance Minister, gave a professorial lecture on the economic principles behind taxation and how they affect and benefit the people when the government takes decisions. He pointed out that fuel prices have a direct impact on the input costs of farmers, fishermen, and many other sections of the society and are linked to inflation. “Whenever the DMK has been in government, it has reduced the tax on fuels to benefit the people. During the tenure of former CM M Karunanidhi, tax on fuels was reduced three times since 2003 and now, it was brought down once,” Rajan said.

However, since the PM assumed office in 2014, the tax on petrol has been hiked threefold and has now been reduced by just 5%, he said, adding the tax on diesel had been increased sevenfold. “Had the Tamil Nadu government hiked the tax on fuels whenever the Union government did, we could have also reduced the tax when the Government of India effected a reduction. But the TN government did not hike the tax when the Union government did.

Without considering this fact, demanding the State government to reduce the tax is unfair. How can we accept that we are against cooperative federalism?” Rajan questioned. “The Prime Minister has spoken about cooperative federalism. TN runs its own medical colleges by spending its own funds. But the Union government insists the examination be conducted under its law. Is this cooperative federalism? Once upon a time, when Rs 1 went to the Union government as tax from the State, 60 paise returned. Over a period, it has shrunk to just 35 paise.

Even in that, the Union government dictates how the amount should be spent, and puts forth a hundred and one conditions. The share of funds from the Union government for schemes is reduced year by year and at one point of time, the Government of India relieves itself and leaves the entire cost of the schemes to the State government. Is this cooperative federalism?” he asked. Later, talking to reporters at the Secretariat, he criticised the Union government for not properly sharing tax revenues with States.