Chennai, March 1 (IANS) Even with the global crude prices on the
upswing, poll-bound Tamil Nadu Tuesday reduced the sales tax on petrol
by three percent to 27 percent.
In a statement issued here, Tamil Nadu Chief Minister M. Karunanidhi
said oil marketing companies in India are forced to increase the selling
price as the crude prices in the international market are going up.
According to him, the state government has decided to come to the help
of two-wheeler owners with a tax rate reduction as it they who will be
the most affected by the fuel price hikes.
He said the government will be forgoing an annual revenue of around
Rs.210 crore because of this move while the price per litre of petrol
will come down by Rs.1.38.