Tamil Nadu imposes steep VAT hike on petrol, diesel

Chennai: The State government‘s move effecting a significant hike in the rates of Value Added Tax (VAT) on petrol from 27 per cent to 34 per cent and that on diesel from 21.4 per cent to 25 per cent leading to an increase of Rs 3.78 in the price of petrol per litre and Rs 1.70 in the price of diesel per litre, since Saturday midnight, has caught everyone, including various political parties, by surprise.

Political parties and the petroleum dealers association condemned the hike saying it would have a cascading effect and result in rise in prices of essential commodities, further burdening the common man and demanded its immediate rollback.

The fresh hike would compound the woes of not only the general public but also road users, who were already affected by the periodic upward revision of fuel prices by the oil marketing companies citing prevailing crude oil rates in the international market.

Condemning the steep hike, DMK working president, MK Stalin said the upward revision in VAT rates would affect the common people and the state’s total development, too.

Terming it as unfair the amendments brought to VAT, he urged Chief Minister Edappadi K. Palanisami to immediately roll back the hike, failing which the DMK would press for amendments in the State Assembly during the budget session seeking its withdrawal.

Expressing shock over the “sudden” revision, BJP state president Dr. Tamilisai Soundararajan demanded an immediate roll back. PMK founder Dr S. Ramadoss said the hike in VAT rates ahead of the Budget amounts to deceiving the people.

VCK chief Thol Thirumavalavan said the steep hike imposed additional burden on the people already reeling under various problems including drought.