Tamil Nadu Finance Minister Palanivel Thiagarajan on Monday targeted Nirmala Sitharaman.
New Delhi:
Tamil Nadu Finance Minister Palanivel Thiagarajan on Monday did not hit out at Union Finance Minister Nirmala Sitharaman for “calling” the states to cut their share in taxes on petrol and diesel, saying that her state would be “hit by this”. There is no need for dictation from poor performers “we”.
“We have one of the best statistical results of any government in India. We brought down the revenue deficit from Rs 60,000 to close to Rs 40,000 crore. Our fiscal deficit is half that of the central government. Our per capita income is double. National of average. Our inflation is only 5 percent when national inflation is 8 percent. We know what we’re doing. We don’t need anyone to tell us what to do. We don’t need dictations from people who We don’t like other people extra constitutionally, authoritarianly forcing us to do things we don’t want to do,” Mr. Thiagarajan told NDTV in an interview.
“I don’t remember him using the word ‘request’ anywhere. He made demands and then I think the Union Finance Minister used the word ‘incentive’. I don’t think the Constitution allows that to happen. The Constitution allows the states to manage their own finances with whatever is left of us,” he said.
“When the central government raised excise duty and that too shifted from net excise duty to cess and surcharge, three times on petrol and 10 times on diesel, they did not even consult the states. They cut the share given to us. At that time, they had no mercy, no idea. They have bad tax policy for seven-eight years, now that chickens are coming home, they are making us fake villains. This is tyrannical. This shameless hypocrisy It is,” said the minister.
“It increased from Rs 9.4 to Rs 32.5, they cut Rs 5 once and Rs 8 once. You take Rs 13, that is still Rs 19. It is still twice the rate at which this government The tax was being levied when K came to power. Let’s take diesel. It was Rs.3.4 or something, they took it to Rs.32, they cut it to Rs.10 and another Rs.8 or 6. So, they are still four or five times where they were,” added Mr. Thiagarajan.
The DMK leader’s furious exit came two days after Ms Sitharaman announced tax cuts on fuel and changes in levies on critical items to protect consumers from rising prices amid high inflation. He also asked the states to join in and reduce their share.
He said in a series of tweets that the new tax regime on petrol and diesel could result in a loss of around Indian Rupees 1 trillion in annual revenue to the government.