The Tamil Nadu government is ready to reconsider its decision on bringing fuel prices under the Goods and Services Tax regime, provided the Centre gives up the cess surcharge on petrol and diesel, Finance Minister Palanivel Thiaga Rajan said on Monday.
He said that though the State would lose revenue after allowing the fuel prices to be brought under GST, the measure would help to bring down inflation, thus helping both the country and common people. He clarified that the DMK had changed its earlier stand “based on the changing taxation situation”.
“Even if the crude oil price in global market is decreasing Central government is not ready to give up the cess charge on petroleum products and is not ready to share the revenue with the states. It is helping big companies by reducing corporate taxes and burdening people by inducing more indirect taxes in order to make up with the fall in revenue. A higher fuel price will lead to higher inflation, further burdening people,” he said.
Even at the recent GST Council meeting, the Union government did not express its stand on the issue. “It has been tabled at the meeting as per the direction of the Kerala High Court in a particular case,” he added.