The Tamil Nadu government said the tax cut on fuel by the centre is not reasonable to expect states to cut taxes on fuel. Tamil Nadu Finance Minister Palanivel Thiaga Rajan said they are already facing a loss of Rs 1,000 crore due to earlier cuts.
Ms Sitharaman, in a series of tweets, explained that the excise duty component that has been slased not shareable by the state and the Centre bears the full cost.
Calling reductions in fuel prices a formality, Rajasthan Chief Minister Ashok Gehlot on Saturday claimed the Centre had to reduce the excise duty under the pressure of the Congress party s public awareness campaign decided in the recently held Chintan Shivir. Fuel Prices Reduction a Formality, Says Rajasthan CM Ashok Gehlot.