CPM demands change in petroleum tax structure

Aurangabad (Maharashtra), Aug 22: CPM General Secretary Prakash Karat has held the Ad Valorem duty tax structure responsible for the rise in inflation and hike in prices of petroleum products in the country and demanded an immediate change in the present tax structure.

Mr Karat told mediapersons here today as per the present tax structure, tax value goes up in accordance with the rise in petroleum prices, which according to him puts a double burden on the common man, while the Government has been collecting more revenue whenever there is a rise in price of petroleum products.

Since the petroleum products play an important role in the economy, the rise in their prices adds fuel to the inflation rate, Mr Karat said and demanded immediate revision in the tax structure of petroleum prices, by giving up the present Ad Valorem method.

The CPM general secretary, who was in the city in connection with the party's national mass awareness drive, also held the inclusion of essential commodities in forward trading responsible for the rise in their prices and demanded revision of the Government's forward trading policy.

According to him, the inclusion of wheat, pulses and rice in the forward trading by the Government led to a rise in prices of these commodities, since forward trading resulted into excess speculation of these items.

Mr Karat said UPA Chairperson Sonia Gandhi has also expressed concern over the rising prices of the essential commodities and has supported the views expressed by the CPM.

He said the BJP, too, has been supporting the withdrawal of these essential commodities from the basket of forward market and demanded immediate steps from the Centre on the issue.

He also reiterated the party's stand on the Centre's special economic zone (SEZ) policy.

Mr Karat said it was not justified that the Government has been offering thousands of hectares of land to the captions of industry to set up SEZs at concessional rates, who are utilising only 25 per cent of the SEZ plots for industrial activity and setting up commercial complexes on the remaining land.

The Government had acquired these lands from the farmers at a nominal value, before offering those plots to the industry, he pointed out.

He also criticised the SEZ policy, which has been offering a tax free facility to the units coming up on these plots.

The CPM general secretary said neither the farmers were benefitted from the policy nor the Government, since both were losing in the deal.

UNI

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