Speaking to reporters here, he said prices of consumer and electrical goods were far less in neighbouring Cuddalore, where it was five per cent and Villupuram and other districts in Tamil Nadu than here.
Kannan, also former Home Minister, said he expects the Chief Minister to announce scrapping of the tax or a maximum reduction in the Jul 16 budget.
He thanked the Chief Minister, also founder of ruling AINRC, for the support he had announced for the UPA presidential nominee Pranab Mukherjee, saying this is a healthy trend.
Stating that the Centre would always be beside the AINRC government, he said its financial requirements would be met as seen by the recent approval of Rs 3000 crore Plan outlay for fiscal 2012-13 approved by the Planning Commission.
On the problem faced by students of Puducherry region on regional reservation for admission to professional colleges under government quota, he said Rangasamy should review the policy as it had started affecting students of the region.
Karaikal has been earmarked 18 per cent while Mahe and Yanam regions have been allotted four and three per cent of seats in professional courses under regional reservation).
Kannan said he had asked Congress legislator K Lakshminarayanan to meet the Chief Minister and urge him to bring in a system under which no section of students faced hardship due to regional quota.
He said Rangasamy was always a Congressman though he had started All India NR Congress and recalled that he had gone on record to say he had great respect and regard for AICC leader Sonia Gandhi.
Asked if he was insisting on Rangasamy returning to Congress he said, "I do not want to make any commitment".