Tamil Nadu Chamber Of Commerce Has Asked The Tamil Nadu Government Yo Lower The Gasoline VAT

Regarding the sake of the average citizen, trade, and industry, the Tamilnadu Chamber of Commerce and Industry has requested the state government to lower the percentage added tax (VAT) on fuel. The excise duty decrement of Rs 10 and Rs 5 per litre for diesel and petrol, which took place on November 4, was highlighted by Chamber president N Jegatheesan, with the Union government encouraging states to lower VAT to carry on the advantage to consumers. Due to the massive hard effort of trade and industry, the economy is making a considerable recovery from the slump caused by the Covid-19 pandemic. A significant drop in the VAT on gasoline and diesel would boost demand while also lowering inflation.

He went on to say that this will also lower the cost of necessary necessities. It would, in turn, help poor and middle-class households in various ways. However, thiirteen states have decreased their gasoline VAT, according to the chamber. Karnataka, Uttar Pradesh, Sikkim, Assam, Tripura, and Goa, as well as the adjacent Union territory of Puducherry, have lowered their VAT by Rs 7 per litre. In Puducherry, the lowering in VAT has resulted in petrol and diesel prices falling to Rs 94.94 and Rs 83.58 per litre, proportionately.

According to the chamber, in Chennai, petrol costs Rs 101.4 per litre and diesel costs Rs 91.43 per litre. As farmers prepare for the rabi season, a cut in diesel taxes would benefit them tremendously and strengthen the state's entire economic cycle. It encouraged the DMK government to act quickly to implement its electoral promise of significantly lowering fuel VAT.