TN lowers diesel duty, Centre refuses rollback on petro price hike

By Staff
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Google Oneindia News

New Delhi, June 11 (UNI) UPA-governed Tamil Nadu today announced a 45 paise waiver of Sales Tax on the increased price of diesel, a day after Andhra Pradesh, Delhi and Goa said they would lower duty on petroleum products to provide ''relief to the common man'', while Himachal Pradesh is yet to take a decision and its cabinet will deliberate on the issue today.

In Tamil Nadu, after the Centre increased the prices of petroleum products, the diesel prices went up by Rs 2.23. In a statement here, state Chief Minister M Karunanidhi said the Sales tax component of 0.45 paise on this would be waived. This means the effective increase in the price of diesel would be Rs 1.78 per litre in the state.

Meanwhile, Orissa today ruled out any possibility of reducing the sales tax on petrol and diesel.

Most opposition ruled states as well as the Left-run governments demanded a rollback of the hike and said they will not reduce duties on petroleum products unless the same is done by the UPA government at the Centre.

The Left Front government in West Bengal today urged the UPA government to reduce its quantum of taxes on petroleum products before asking the state governments to do so.

Kerala Chief Minister V S Achuthanandan today ruled out any reduction of sales tax on petroleum products until the Centre rolled back the recent hike.

Mr Karunanidhi's statement, however, did not make any reference with regard to petrol, indicating that there would be no change in the price of petrol.

He said the state government would incur an annual loss of Rs 280 crore (Rs 180 crore due to waiver of Sales Tax on the increased price of diesel and Rs 100 crore for not increasing bus fare).

''The total loss suffered by the state per year will be Rs 280 crore,'' he said and added this decision would go well with the people.

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