The Hindu : Andhra Pradesh / Hyderabad News : Diesel price hike avoidable with tax cuts, says TDP president

Online edition of India's National Newspaper
Sunday, Jun 26, 2011
ePaper | Mobile/PDA Version

Andhra Pradesh

Andhra Pradesh - Hyderabad

Diesel price hike avoidable with tax cuts, says TDP president

Staff Reporter

‘State levying 33 p.c. VAT on petrol and 22.5 p.c. on diesel'

Centre has not even spared the poor, says TDP chief
“Petroleum Minister S. Jaipal Reddy's reaction ridiculous”

Strong condemnation: Activists of the TDP holding gas cylinders and placards during their protest in Hyderabad on Saturday.

HYDERABAD: Telugu Desam Party (TDP) president N. Chandrababu Naidu has felt that the fresh bout of hike in diesel, kerosene and LPG cylinder prices is very much avoidable provided the Centre and State governments were willing to reduce their share of the taxes levied on the fuels.

In a sharp reaction to the hike effected from Friday midnight, Mr. Naidu sarcastically remarked: “The State and Central Governments appear to be committed to take the people 50 years back by forcing them to use bullock-carts for travel and firewood ‘chullahs' for cooking with frequent hikes in the fuel prices.”

Even countries with poor economies like Pakistan, Bangladesh, Nepal and Sri Lanka have lesser prices, he said.

It was unfortunate that the Centre had not spared even the poor who use kerosene for cooking and lighting, the TDP chief said while addressing a press conference here on Saturday. The fresh hike was the 21 {+s} {+t} instance of increasing fuel prices by the Centre during the last seven years, in spite of the Congress-led UPA's 2009 pre-poll promise of controlling prices of essential commodities by keeping a tab on the fuel prices, he said.

There were many avenues in front of the Centre to provide relief to people on prices of petro-fuels but it was unwilling to give even a thought. Prices could be brought down by reducing customs and excise duties by the Centre and VAT and sales tax by the State governments. According to Rangarajan Committee report of 2006, the Centre was garnering 38 per cent of petrol price and 17 pc of diesel price in the form of taxes, Mr. Naidu said.

He sought to know whether the Centre could not afford some tax relief on petro-fuels used by masses when it was giving huge tax and other incentives to industries and other businesses. Petroleum Minister S. Jaipal Reddy's reaction that it was a small hike was ridiculous and his hint that there would be another hike soon was a reflection of government's arrogance, he said.

Naidu's take

People at large in the State may have been sulking over the hike in prices of diesel, LPG cylinders and kerosene effected by the Centre, but the State Government could be jumping in joy as the fresh hike rakes in considerable tax revenue to its coffers.

Leader of the Opposition and TDP president N. Chandrababu Naidu on Saturday said that out of Rs. 3,000 crore burden on the people of Andhra Pradesh with fuel price hike, an amount of Rs. 469 crore would go into the government kitty in the form of taxes. The State had the ‘distinction' of levying highest taxes on all petro-fuels in the country, he remarked.

Andhra Pradesh was levying 33 per cent VAT on petrol and 22.5 pc on diesel. He suggested the government to provide some relief to people by reducing the taxes and warned of taking up an agitation along with like-minded parties if the governments failed to heed. On its part, the TDP would hold protest in all district headquarters on June 27 against the fresh hike, he stated.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh