The Hindu : Andhra Pradesh / Hyderabad News : Fuel price: Opposition walks out

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Wednesday, Jul 29, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Fuel price: Opposition walks out

State government rejects demand for sales tax cut on petrol, diesel

Government protecting interests of the rich, says Telugu Desam president
Civil Supplies Minister J. Krishna Rao rules out reduction in sales tax

HYDERABAD: The entire Opposition, barring the Praja Rajyam, staged a walkout during question hour in the Assembly on Tuesday after the government rejected its demand for reducing the sales tax on petrol and diesel. The parties contended that the price hike of petroleum products resulted in essential commodities becoming costly and casting a burden on APSRTC.

Replying to the main question by G. Muddukrishnama Naidu (TDP) and supplementaries by others, Civil Supplies Minister J. Krishna Rao maintained that ST on petroleum products in Andhra Pradesh was the least among States. He ruled out any reduction. He said the price of petrol and diesel had been raised eight times during the last five years with an increase of Rs.7.62 (petrol) and Rs. 9.46 (diesel) a litre up to 2008-09. The tax on petrol was cut from 34 to 33 per cent and on diesel from 23 to 22.5 per cent from June 20, 2006.

Before leading the walkout by TDP, Opposition leader N. Chandrababu Naidu said ST on petrol in the State was highest in the country. He accused the government of protecting interests of the rich by reducing ST on aviation turbine fuel (ATF), while neglecting APSRTC, used by the common man.

Intervening, Chief Minister Y.S. Rajasekhara Reddy said it was the “good luck” of the people and APSRTC that the Congress came to power in 2004. “Had the TDP won even the tyres and tubes would have been sold.” The APSRTC was in the red of Rs.400 crore when the Congress came to power. The government cut the loss by two-thirds ensuring its revival. Under exceptional circumstances, ST on ATF had to be reduced and as a result the flights for refuelling increased as also the overall fuel consumption.

YSR’s advice

Dr. Reddy stated that the government was compassionate and absorbed the entire hike of Rs.50 per LPG cylinder.

He took a dig at Mr. Naidu and advised him to change his mindset. He sympathised with him, as the latter was “frustrated” since people did not believe his “deceptive promises”.

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