Remove local taxes to cut price rise: FM to states

New Delhi, Jan 19: With an aim to reduce food prices in the country, Finance Minister Pranab Mukherjee on Wednesday, Jan 19, has asked states to review octroi and mandi tax like local levies.

In his address to state finance ministers during pre-budget deliberations here, Mukherjee said, "I would urge you to review all local levies like mandi tax and octroi duty which add to prices of food articles and impede smooth movement of essential commodities."

Stressing the need of state governments' role in controlling spiralling prices, the Finance Minister asked the state governments to reduce the gap between wholesale prices and retail prices.

"There is a need for you to urgently look into supply management of items that are driving the current round of food inflation, in particular local factors that are widening the gap between wholesale and retail prices," The Finance Minister said.

OneIndia News

(With inputs from PTI)