TN CM Stalin hits out at Centre post PM Modi dig over fuel VAT; 'TN people know the truth'

Rebutting PM Modi's claims that states including Tamil Nadu did not reduce Value Added Tax (VAT) incurred on petrol and did so only after the Centre's action, TN CM MK Stalin said that his government cut down the prices while the Centre had increased it significantly. Addressing the state Assembly on Thursday, April 28, Stalin said that while the Centre increased taxes, the Tamil Nadu government had reduced them.

"Central government has done drama to decrease fuel prices before Assembly election in five states election and increased the prices again after the results were announced. People of Tamil Nadu know very well who reduces the price and who increases the price," CM Stalin said while hitting out at PM Modi's remark on states, including Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand, and Tamil Nadu. 

CM Stalin hits out at PM Modi's remark about non-BJP-ruled states in relation to VAT on fuel

CM Stalin's attention to PM Modi's observation came after Tamil Nadu Finance Minister Palanivel Thiagarajan said that his state had in fact scrapped VAT even before the BJP-led Centre did so.

"It was estimated that the state Government would incur a loss of Rs 1,160 Cr annually due to this reduction. Yet this was done, to reduce the burden on the people," he said.

Addressing the Assembly, CM Stalin said, "The Prime Minister has said that since states did not reduce the taxes on petrol and diesel, the price can't be brought down in the country. If I should reply to this, his statement is like trying to hide a whole pumpkin in a plate of rice."

"The Union government did not reduce petrol and diesel prices when crude oil prices slumped in 2014 and took the extra revenue. The Union government reduced the tax return and could have shared it with state governments. The Union government also increased taxes, burdening the people and earning lakhs of crores," he added, while also alleging the Centre of acting like they reduced taxes before state elections and increased the fuel rates right after polls.

"However, as per our poll promise, after winning the election and keeping in mind the struggle of the people, the Tamil Nadu government reduced the tax on petrol. The people of Tamil Nadu know this very well. I leave it to the people to decide who showed interest in reducing the petrol price and who acted like reducing the petrol price, throwing the blame on someone else," CM Stalin said.