SPECIAL COVERAGE
CHANDIGARH

LUDHIANA

DELHI



THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS


M A I N   N E W S

Petrol price hike unjustified, panel member to PM

New Delhi, June 11
Strongly opposing the increase in petrol and diesel prices, member of the Parliamentary Committee on Finance and PAC C. Ram Chandraiah has urged Prime Minister Manmohan Singh to reduce excise duty on these items instead of asking state governments to cut sales tax.

Disputing that the rising international crude prices were mainly responsible for the increase in prices of petroleum, Mr Chandraiah said fiscal measures, particularly high tax component, were equally to be blamed.

In a letter to the Prime Minister released to the press today, he pointed out that there were a multitude of excise duties on petrol and diesel which could be scrapped or brought down.

Excise duty comprised about 36 per cent of retail price of petrol and 17 per cent of the retail diesel price, which means that about Rs 17 out of Rs 48 in the petrol price and about Rs 6.50 out of diesel price comes from excise duties.

And total taxes come to more than 50 per cent of what is paid as total retail price of petrol and diesel.

''This is a disturbing trend. May I, therefore, suggest that excise duties on petroleum products be so structured as to ensure that the interest of the consumer were not compromised,'' said the MP.

He suggested that the ad valorem component in the existing mix should be replaced by a single specific component to ensure that the tax burden on consumer did not go up each time the price of petrol and diesel went up.

In his view, a steep price hike would have a disturbing trend on the general price line, which would hit the common man further. The rise could have been averted if the government had implemented a duty neutralisation regime.

He said asking states to cut down sales tax was not just as they levy only this tax on petroleum while the Centre levied a number of excise duties.

Mr Chandraiah also advised him to convene a meeting of Chief Ministers to discuss the issue. UNI

Back

Diesel prices cut marginally in TN
Tribune News Service

Chennai, June 11
Buckling under pressure from its own ranks and also from its electoral allies, Tamil Nadu Chief Minister M. Karunanidhi yesterday reduced the selling price of diesel by a small fraction of 45 paise and bemoaned the fact by saying that it would cost the exchequer totally to the tune of Rs 280 crores.

Till Saturday, Mr Karunanidhi had ruled out any decrease in the price of fuel saying it would affect the state’s finances badly.

In a statement, Mr Karunanidhi averred: “As a result of this measure, Tamil Nadu would lose Rs 180 crores a year. As a sequel to this reduction, our refusal to increase the bus fares will cost us an additional amount of Rs 100 crores.”

Back



HOME PAGE | Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Opinions |
| Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi |
| Calendar | Weather | Archive | Subscribe | Suggestion | E-mail |