'State not in position to reduce tax on petrol'

Justifying the stand of Punjab chief minister on not reducing the tax on petro-products, Cabinet Minister and senior BJP leader Manoranjan Kalia on Friday said the state was not in a position to face the burnt of inefficient policies of the Union Government.

"States are having limited sources to generate revenue and if taxes on petroleum products are reduced, it will put an adverse impact on the development projects of the state", Kalia told PTI.

Alleging the Congress-led UPA government for politicising the issue of sales tax on the petroleum products, Kalia said that the party fears from 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 election", he said.
Blaming the Union government of inefficiency, Kalia said even the three renowned economists, Prime Minister Manmohan Singh, Finance Minister P Chidambaram and Deputy Chairman of Planning Commission Montek Singh Ahluwalia, have failed to control inflation.

"Too many cooks spoils the dish, has been proved at national scene", he said.

Reacting on the statement of Montek Singh Ahluwalia that rate of inflation would be brought under control within next four months, Kalia said even a common man could understand that after increase in the prices of petrol, rate of inflation would further shoot up.

Kalia demanded immediate rollback of hike in the prices of LPG cylinder to extend relief to the consumer.