PM favours waiving octroi, local taxes

New Delhi, Feb 4 (PTI) Admitting that inflation poseda serious threat to the growth momentum affecting the poor andvulnerable sections, Prime Minister Manmohan Singh todayfavoured waiving mandi, octroi and local taxes, which impedethe smooth movement of essential commodities.

Addressing chief secretaries of states, Singh saidthat though the economy has been on a high growth trajectoryfor the past few years, inflation posed a "serious threat tothe growth momentum".

"There seems to be a strong case for waiving manditaxes, octroi and local taxes, which impede the smoothmovement of essential commodities," he told the topbureaucrats.

He said there was a need for a "paradigm shift" in theinstitutional arrangements, for improving the availability ofvarious commodities to meet the higher levels of domesticconsumption.

Referring to the internal security situation, he said itwas "tense in some parts of our country".

He said there has been an unacceptably high level ofviolence in areas affected by Left-wing extremism and in theKashmir Valley.

Singh also said that serious concern had beenexpressed in many responsible circles about the "lack ofethical conduct and probity in our public life".

The Prime Minister said though major anti-povertyprogrammes have achieved considerable success, the "quality ofdelivery of service has not been always as good as it couldbe, as it should be". (More) PTI MS SC