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Chennai, Jun 30
Tamil Nadu Chief Minister M Karunanidhi today virtually ruled out any revision of tax structures on petroleum products by the state government in the wake of latest hike in the prices, saying states cannot afford to do that in present economic conditions.
'Tamil Nadu government had reduced sales tax twice on diesel in 2006 and 2008 to 23.43 per cent and 21.43 per cent, respectively when the Centre hiked fuel prices then. No other state had taken such a measure,' he said writing in party mouthpiece 'urasoli.'
Tamil Nadu Chief Minister M Karunanidhi today virtually ruled out any revision of tax structures on petroleum products by the state government in the wake of latest hike in the prices, saying states cannot afford to do that in present economic conditions.
'Tamil Nadu government had reduced sales tax twice on diesel in 2006 and 2008 to 23.43 per cent and 21.43 per cent, respectively when the Centre hiked fuel prices then. No other state had taken such a measure,' he said writing in party mouthpiece 'urasoli.'
However, further revision of taxes was not possible considering the financial constrains, he said.
'In the present situation where there are lesser avenues of revenue-generation for state governments, further cut on taxes will affect their economic condition,' he said.
He recalled his recent statement ruling out increase in bus fares and said it would cause a loss of Rs 150 crore.
With a tax rate of 30 per cent on petrol and 21.43 per cent on diesel, the state had one of the lowest tax rates, he said.
It was at the behest of DMK and some other partners of UPA that the government had not increased the prices to its desired levels, he claimed.
On the issue of swine flu with fresh cases being reported in the state, Karunanidhi said the Health department had been directed to act swiftly and preventive measures were put in place when the virus was spreading in Kerala.