Puducherry, Jun 4 (UNI) Chairman of the Puducherry-based Indian Institute of Community Development V A Vasudeva Raju today said the 'tinkering approach' adopted by the Union Government to overcome the situation and help public sector oil companies from mounting losses was not proper.
In a statement here, Mr Raju called for a 'holistic approach' since there was no guarantee that the price of crude oil would not rise further from the present 136 dollar per barrel.
Both the central and state governments were equally responsible for the steep increase in the price of petrol and diesel because of the 'faulty taxation policy' followed by them, Mr Raju, who is also Puducherry Panchayat Movement president said.
While the basic price of petrol was Rs 21.93 and diesel Rs 22.46, the tax levied by both the governments was Rs 22.37 and Rs 8.52 respectively. By levying such 'exhorbitant taxes, the Union government was generating a revenue of Rs 71,000 crore and state governments Rs 62,000 crore per annum, he pointed out.
Mr Raju said petrol and diesel should be considered as 'lifeline commodities' and not treated like other commodities by covering them in the tax net.
Since increase in the price of petrol and diesel creates instant rise in prices of all commodities and services affecting general public, the governments should totally 'scrap' the taxes levied on the fuel and find out alternative source to generate revenue, he added.
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