The state government of Tamil Nadu announced a Rs 3 per litre reduction in petrol prices on Friday, which will bring a lot of joy to motorists in the state.
Referring to the White Paper's assertion that "once-in-a-generation reforms are required," Tamil Nadu Finance Minister Palanivel Thiaga Rajan presented a populist budget on Friday that included tax cuts for gasoline, waivers of cooperative loans to self-help groups, and a tax amnesty program, among other things.
Rajan also announced the government's decision to invest Rs 100 crore in an Urban Wage Employment Scheme.
"This Government has decided to reduce the effective rate of tax on petrol by ₹3 per litre and thereby provide major relief to the toiling working-class people in the State. This measure will result in a loss of revenue of Rs.1,160 crore a year," Thiagarajan said.
For months, petroleum products prices have been at record highs, and while they have been stable, they have not decreased. Petrol was priced at Rs 102.49 per litre on Friday, while diesel was priced at Rs 94.39 per litre.
Apart from the base price of petrol, the federal and state governments each levy their own taxes. The Union government is responsible for a substantial chunk of this. In this situation, the Rs 3 cut will be taken from the state government's taxes, which it would also bear.
On the subject of fuel price reductions, Rajan stated that the government has agreed to reduce the effective rate of tax on petrol by Rs 3 per litre, providing significant assistance to the state's toiling working-class citizens. According to him, this action will result in a revenue loss of Rs 1,160 crore each year.
Also, the government will waive Rs 2,756 crore in loans owed to co-operative credit societies by self-help organizations, and an amount of Rs 600 crore has been set aside in the budget for this purpose.