The state government of Tamil Nadu has, on Sunday, revised the Value Added Tax (VAT) on fuel leaving the prices to petrol and diesel to rise amid the statewide lockdown that has levied economic instability on the people as they endured to run their livelihoods either with no pay or with no jobs. 

Through the increase in the VAT, the price of petrol had gone up by Rs 3.25 per liter while diesel went up by Rs 2.50 per liter. According to the state government, the change in the structure of the indirect tax has been made after being anticipated that the Central government would decrease the price of the fuel in the coming days due to the plunge in demand. 

The government stated that the decrease in the prices and the unchanged structure of the VAT would be declining the revenue of the state government and the government hopes that the increase in VAT would bring additional revenue of Rs 250 crore to the state. The tax on fuel is one of the major revenue channels to the state government as it won't fall under the ambit of the Goods and Service Tax (GST).

Taxes on Stamp duty, alcohol, and VAT on fuel are the major tex revenues for the state government which are under its jurisdiction and the increase has come at the high time when the state is under complete lockdown that has been in place to contain the spread of Coronavirus. The state government has also been urging the Central government to disburse additional funds to the state. 

Earlier, in the video-conferencing meet with the Prime Minister, Tamil Nadu Chief Minister Edappadi Palaniswami has asked the Center to release the pending GST dues to the state for December and January to grip up the financial measures to combat the spread of the virus. However, the opposition leaders MK Stalin, KS Alagiri, and Dhinakaran had condemned the state's revision on VAT and demanded the government to take back the hike. 

DMK President Stalin said that the Chief Minister has been harming the people as much as he can amid the Coronavirus outbreak. By citing that the price hike in fuel would increase the anxiety among people, he demanded the government to take back its decision of hiking the fuel prices.