State can decide on reduction of sales tax: Deora

Chennai, June 10: The UPA Government at the Centre will not insist that Tamil Nadu reduce the sales tax on petrol and diesel in the wake of recent oil price hike, Union Petroleum Minister Murli Deora said today.

''We are not insisting the Tamil Nadu Government reduce the sales tax. The media reports in this regard are incorrect,'' he told reporters after calling on Chief Minister M Karunanidhi at his Gopalapuram residence here.

He also clarified that the Maharashtra Government had not slashed the sales tax but had only agreed not to levy sales tax for the incremental increase of the fuel price.

The Minister said he was not aware of the decision taken by other Congress-ruled states like Andhra Pradesh and Delhi on reducing the sales tax on petrol and diesel.

Mr Deora said he extended an invitation to Mr Karunanidhi to dedicate the Rs 498 crore Chennai-Trichy-Madurai fuel pipeline to the nation at the inaugural function to be held on June 26.

His visit to the city was also to explain to the people the rationale behind the oil price hike, he added.

Union Communication Minister Dayandihi Maran, State Chief Secretary L K Tripathi and State Industries Secretary Sakthikanda Das were also present during the meeting that lasted for about 45 minutes.

UNI