Tamil Nadu cuts 2 % sales tax on diesel

The Tamil Nadu government has announced 2 percent sales tax cut on diesel heeding to Prime Minister Dr Manmohan Singh's appeal to states to reduce tax and share the burden. Chief minister Mr M.Karunanidhi in a statement issued in Chennai today said, the state will incur a loss of 250 crores per year, following the move.

He recalled that the state government had earlier reduced sales tax on petroleum products by 1.57 per cent in 2006, when the centre had hiked the prices of diesel and petrol - Bureau Report

Source: Chennaionline

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