Implement Left's suggestions for avoiding fuel price hike: Raja

Chennai, Jun 12 (UNI) CPI National Secretary D Raja today opined the UPA Government implement the Left's suggestions for avoiding the frequent hike in prices of petrol and diesel even as he suggested a roll back of the recent increase.

Addressing a press conference here, Mr Raja said they had already sent a note to Prime Minister Manmohan Singh suggesting alternatives for avoiding the price hike, including restructuring and reducing the Excise Duty on retail prices of petrol and diesel.

While the Excise Duty on petrol was between 52 to 55 per cent it was 32 to 34 per cent on diesel, he claimed.

They had also suggested the establishment of price stabilisation fund by utilising the huge cess collected towards crude import. The same suggestion was also mooted out by a Parliamentary Committee on Petroleum Products and Natural Gas.

Though they had no two opinions on the profitable functioning of public sector oil companies, it cannot be accepted they were in the red. Only the profits had reduced, he claimed.

The government was used to treating these companies as fund mobilising institutions which was not good, he added.

The Left also suggested widening the tax net and detection of 'high-level' of tax evasion.

The CPI leader also took strong objection to the Centre blaming the state governments for charging high Sales Tax which was a 'diversionary tactic.' He said the Centre's appeal to the states to reduce Sales Tax on retail prices of petrol and diesel itself showed the government had accepted the fact the price hike was severely affecting the common people.

The UPA Government should not escape from its primary responsibilities under any circumstances, he emphasised.

He also wanted the Centre to finalise the tax sharing ratio between the Centre and states immediately in order to improve the financial position of the state governments.

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