The Chief Minister, Dr Y.S. Rajasekhar Reddy, is not amenable to the suggestion to states by the Union petroleum minister, Mr Murli Deora, to reduce sales tax on petrol and diesel to lessen the burden on the common man.
Mr Deora revealed in the Rajya Sabha that his ministry had asked all the Chief Ministers and the empowered committee of state finance ministers to rationalise sales tax on petrol and diesel to protect people from the impact of rising international oil prices.
However, sources close to the Andhra Pradesh Chief Minister said it was not possible either to reduce or rationalise the sales tax being imposed by the state government since it was facing a serious fund crunch.
“Everyone knows that the state’s financial situation is precarious and that it is dependent on the Centre’s grants,” said the source. He further said: “But the Centre is not ready to bear any additional expenditure and is constantly asking us to improve our resources. At the same time, it also asks us to reduce the sales tax on petroleum products.”
The source added that there was nothing new in the minister’s suggestion.“He makes this suggestion whenever the Centre increases the prices on petroleum products. But we have to think of our revenue deficits,” he said.
The finance minister, Mr K. Rosaiah, said any decision on Mr Deora’s suggestion would have to be taken by the state Cabinet. “I cannot unilaterally react to this,” he said. Meanwhile, Mr Deora said in the Rajya Sabha that public sector oil firms will suffer revenue loss of Rs 2,880 crore during July despite the hike in prices of fuel.
Mr Deora revealed in the Rajya Sabha that his ministry had asked all the Chief Ministers and the empowered committee of state finance ministers to rationalise sales tax on petrol and diesel to protect people from the impact of rising international oil prices.
However, sources close to the Andhra Pradesh Chief Minister said it was not possible either to reduce or rationalise the sales tax being imposed by the state government since it was facing a serious fund crunch.
“Everyone knows that the state’s financial situation is precarious and that it is dependent on the Centre’s grants,” said the source. He further said: “But the Centre is not ready to bear any additional expenditure and is constantly asking us to improve our resources. At the same time, it also asks us to reduce the sales tax on petroleum products.”
The source added that there was nothing new in the minister’s suggestion.“He makes this suggestion whenever the Centre increases the prices on petroleum products. But we have to think of our revenue deficits,” he said.
The finance minister, Mr K. Rosaiah, said any decision on Mr Deora’s suggestion would have to be taken by the state Cabinet. “I cannot unilaterally react to this,” he said. Meanwhile, Mr Deora said in the Rajya Sabha that public sector oil firms will suffer revenue loss of Rs 2,880 crore during July despite the hike in prices of fuel.
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