Neither fair nor feasible to reduce taxes on fuel, Tamil Nadu FM tells Modi

Hours after Prime Minister Narendra Modi criticized states like Tamil Nadu for not reducing taxes on fuel, Finance Minister P T R Palanivel Thiaga Rajan on Wednesday responded by saying it is “neither fair nor feasible” for the state government to further reduce taxes and suggested that the Centre revert to 2014 rates by removing the levy of cesses and surcharges.

In a detailed statement, Rajan, a top banker before he took the political plunge in 2016, said the DMK dispensation has repeatedly urged the Union Government to reduce the cesses and surcharges being levied and merge them with the basic tax rates so that States get their rightful share from the proceeds of the Union taxes.