The Hindu : National : Inflation worst form of taxation: Jaswant

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Wednesday, Sep 08, 2004

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Inflation worst form of taxation: Jaswant

By Our Special Correspondent

COIMBATORE, SEPT. 7. The former Union Finance Minister, Jaswant Singh, today accused the United Progressive Alliance Government of trying to "transfer the responsibility" for the rising inflation.

Mr. Singh described inflation as the "worst" form of taxation. "It is attacking the poor and housewives in common without their even knowing that they are being taxed," he told presspersons at the airport here. Inflation had shot up to 8.17 per cent. "This means this [rise] is a tax on the poor."

He said "no significant" steps had been taken to contain inflation, and questioned the rationale behind ascribing the rise in inflation to "extraneous factors."

"To my mind this is transference of responsibility," he said.

When it was pointed out that both the Prime Minister and the Finance Minister had expressed confidence that inflation would be controlled, Mr. Singh said he would be happy if they were able to do so.

Counter charge

The Union Minister of State for Statistics and Programme Implementation, Oscar Fernandes, here today blamed the National Democratic Alliance Government for the rise in inflation.

He was responding to the observations of Mr. Jaswant Singh.

Talking to presspersons, Mr. Fernandes alleged that the previous Government had kept the revision of petroleum prices in abeyance for long "with an eye on the Lok Sabha elections."

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