Tamil Nadu finance minister hits back at Nirmala Sitharaman, clarifies state’s stand on price hike


Tamil Nadu finance minister Palanivel Thiaga Rajan, on Wednesday, hit again at union finance minister Nirmala Sitharaman, after she slammed the state authorities for the rise in costs. This occurred on Tuesday, August 2, when a number of controversies had been raised by Dravida Munnetra Kazhagam (DMK) MPs concerning inflation.

The state finance minister, in a video, mentioned that the worth hike was a three-step course of. “The Tamil Nadu IAS officer for business taxes, through the preliminary committee assembly, had given a written and oral submission in opposition to the worth hike. When this was taken up by the GST committee of which TN will not be a member, I had written to them saying we oppose this,” he mentioned.

The minister additional disclosed that the abstract report with 56 suggestions for price revision, during which costs for some had been lowered, levelled for some and elevated for others, was introduced through the full GST assembly in Chandigarh.

Nonetheless, the collective 56 factors got as one level in an inventory of different suggestions. The scenario was such that there was no time to debate in depth about this one level with 56 objects.


He additional alleged that there was a elementary flaw within the GST mannequin. He mentioned, “We now have a number of price constructions and a number of exemptions in GST. It’s the most complicated GST mannequin amongst 140 odd international locations which have some or different type of GST.”

Finance minister Thiaga Rajan additionally criticised how the selections are made, and the way the current voting system solely favours the union authorities. “A 75% constructive response is required for a decision to go. The Union Authorities has 33% of the votes. This implies any decision introduced in by anyone is at a useless finish if the union authorities says no.”

He additional added, “Underneath these circumstances, attempting to power out one agenda with 56 objects on a 20-agenda assembly is an train in futility.”

The state finance minister additionally alleged that the current format will not be a federal construction however is designed to be a backdoor management of the Union authorities.


Speaking about gasoline costs, the Tamil Nadu finance minister mentioned that the state authorities had decreased gasoline costs earlier than the central authorities did. He additionally mentioned that the issue the Centre had was that the state did not scale back it once they requested the states to scale back it.

He added, “Within the current calculation, we’ve got decreased the costs of petrol by Rs 4.9 per litre. We might have switched the cap on taxes by switching from proportion to rupee, however we did not, as a result of we wished the general public to learn. The AIADMK did the change as soon as, however we did not do this. We now have incurred a lack of 3,300 crores in income by permitting this tax reduce.”

He additionally says that the income has solely elevated for the central authorities however not for the state authorities. “Each finance fee, we get much less and fewer of our tax a reimbursement,” mentioned Thiaga Rajan.

He additionally mentions that the implementation of GST has affected the frequent folks in all methods.

On the problem of assembly the ballot guarantees, the finance minister challenged any political social gathering to indicate proof of the share of ballot guarantees accomplished by them, and added, “The DMK authorities, in only one and half years, has fulfilled extra proportion of ballot guarantees in comparison with the BJP or the AIADMK.”

— ENDS —


Leave a Reply

Your email address will not be published.