State not in a position to reduce tax on petrol: Kalia

  • 07/06/2008

  • Indian Express (Chandigarh)

Justifying the stand of Punjab Chief Minister on not reducing the tax on petro-products, cabinet minister and senior BJP leader Manoranjan Kalia today said the state was not in a position to face the brunt of inefficient policies of the Union government. "States have limited sources to generate revenue and if taxes on petroleum products are reduced, they will adversely impact the development projects of the state," Kalia said. Accusing the Congress-led UPA government for politicising the issue of sales tax on the petroleum products, Kalia said the party fears the wrath of public agitating against the extra-ordinary increase in the petrol prices. "The Delhi government took a lead in reducing the tax on petrol fearing defeat in the forth-coming Assembly elections," he said. Kalia said even the three renowned economists, PM Manmohan Singh, Finance Minister P Chidambaram and Deputy Chairman of Planning Commission Montek Singh Ahluwalia, have failed to control inflation.