Tamil Nadu Finance Minister Palanivel Thiyagarajan has replied to Union Finance Minister Nirmala Sitharaman’s remarks in parliament.Thiyagarajan said that the state government had slashed both petrol and diesel prices.
On 1 August in the parliament, Sitharaman had told that despite the union government reducing fuel prices there is no reduction from the side of the state government.
Tamil Nadu government had reduced tax on petrol by Rs 3 per litre in August 2021. Later when the union government announced a reduction, Rs 1.95 was further reduced from the state’s share.
So Rs 4.95 tax reduction has been made on petrol price. The diesel price has also been reduced by Rs 1.76 per litre by the state government.
In the last seven years, the union government has enormously increased the prices of petrol and diesel. While union government is earning good revenue out of it, there is no rise in the revenue of state governments.
Tamil Nadu government govt is not getting enough financial share from the union government.