Cabinet to decide concession in sales tax on petro products

Mumbai, June 10 (UNI) Maharashtra Chief Minister Vilasrao Deshmukh today said the decision on giving concessions in sales tax on increased fuel prices would be taken after detailed discussions in the Cabinet.

After signing an MoU between TCS and the state government to set up a Rs 500 crore development facility in Hinjewadi phase III near Pune, Mr Deshmukh told reporters that, since the issue pertains to financial burden on the state exchequer, it would be taken up in the Cabinet and an appropriate decision in the interest of the people of the state, would be taken.

Asked whether he meant there would be no relief, the Chief Minister said, ''Do not think negative. As I said, an individual cannot take a decision on such issues. I have asked the Chief Secretary and Finance secretary to prepare a note on this issue and put it before the Cabinet. It will be taken up soon''.

He informed that two months ago, Petroleum Minister Murli Deora had told him that sales tax on petro-products in Maharashtra should be reduced since it was the higest anywhere in the country.

''I replied that it would be difficult to do so, as it was the major source of revenue to the state exchquer. But, I said that if the prices of petro-products are increased in future, the state government could consider not increasing the rate of sales tax,'' he clarified and said what Mr Deora mentioned yesterday, was what they had discussed two months ago.

To a query on whether his government had decided in principle not to hike the sales tax but will announce the quantum later resulting in reduction of petrol price by Re one, Mr Deshmukh said, ''The facts and figures will be discussed in the Cabinet.'' UNI MR KU PR KP1330