TN may cut tax on petrol, diesel

New Delhi: The Tamil Nadu government on Monday said it may 'consider' reducing taxes on petrol and diesel, but pointed out its spending on various initiatives, including implementation of the seventh Pay Commission recommendations.

When asked if his state would cut taxes on petrol and diesel, Tamil Nadu Chief Minister K Palaniswami highlighted the requirement of funds for various welfare measures.

He was speaking to reporters here after meeting Prime Minister Narendra Modi to seek Central assistance for various initiatives in the state.

"In Tamil Nadu, as far as the Amma (late Jayalalithaa) government is concerned, funds are required for various departments," he noted.

While the state had recently okayed the implementation of 7th Pay Commission recommendation for its employees, arrears for Transport department staff was also being disbursed, he said.

"Welfare initiatives are happening in various departments. After creating the fund source, government will consider your plea," he told media when asked if his government would axe the tax on fuel.

The Centre had last week announced a Rs 2.50 a litre cut in petrol and diesel prices, factoring in excise duty reduction of Rs 1.50 per litre and asking oil companies to absorb another Re 1.

Many BJP- ruled states had taken a cue from this and announced tax cuts.