No reduction in VAT on petrol, diesel: TN Finance Minister

Tamil Nadu Finance Minister P.T.R. Palanivel Thiaga Rajan on Wednesday ruled out reducing the value added tax (VAT) on petrol and diesel in the present circumstances but promised to bring it down in the future.

Responding to AIADMK's SS Krishnamoorthy's raised issue on fuel price in Tamil Nadu, Rajan said, "I can not reduce VAT on petrol and diesel right now. It will be done in the future. The state's financial situation is worse than expected. We came to know about it as we came to power."

Though during Assembly polls in March, Dravida Munnetra Kazhagam (DMK) promised to reduce prices of petrol and diesel by Rs 5 and Rs 4 per liter respectively and a subsidy of Rs 100 on LPG gas cylinder if the party comes to power in the state.

( With inputs from ANI )