The Hindu : Tamil Nadu News : Fuel price: Treasury Benches, Opposition cross swords

Online edition of India's National Newspaper
Saturday, Nov 20, 2004

Tamil Nadu

Tamil Nadu

Fuel price: Treasury Benches, Opposition cross swords

By Our Special Correspondent

CHENNAI, NOV. 19. The Opposition and the Treasury Benches in the Assembly today crossed swords over the rise in prices of petroleum products with the former urging the State Government to provide relief to the people by scaling down the rate of Sales Tax (ST) and the latter flaying the United Progressive Alliance (UPA) Government for imposing the hike.

Speaking on a special mention, the Congress Legislature party leader, S.R. Balasubramaniam , said the price hike on petrol, diesel and cooking gas was caused by the rise in the price of crude oil effected by the oil-producing countries and due to the prevailing tension in the Middle East.

`Reduce sales tax'

As the Centre had reduced the rate of Excise Duty and Customs Duty on petrol and diesel with a view to reduce the burden of the people, the State Government should also come forward to scale down ST. Many other States including Andhra Pradesh, Assam, Bihar and Delhi had reduced the ST, he claimed.

The Chief Minister, Jayalalithaa, who intervened , said the data gathered from the officials in the neighbouring States showed that they had not reduced ST in the wake of the recent hike . The State Government had not undertaken any revision of the ST she clarified. Mr. Balasubramaniam's suggestion to reduce the ST rates would only push the State into a financial crisis, she said.

It was strange to demand reduction of ST on petroleum products in the State, though it was the UPA Government which had hiked the oil prices on three occasions in a row, she said, adding that people were shocked and agonised by the Centre's decision.

Ms. Jayalalithaa said the Centre had imposed the hike though the crude oil price had actually dropped in October and this month. The Union Petroleum Minister, Mani Shankar Aiyar, himself had admitted that the Government should examine the anomalies in fixing the oil price, she said.

When the deputy leader of the Dravida Munnetra Kazhagam (DMK), Durai Murugan, intervened to say that the Chief Minister should make her position clear on reducing the ST rate , she said the DMK was part of the UPA Government, which had hiked the prices .

The Finance Minister, C. Ponnaiyan, said the additional impact of the international crude price increase should have been absorbed by the Central Government undertakings, instead of burdening the people.

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