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Congress seeks cap on petroleum taxes
Syed Amin Jafri in Hyderabad | January 22, 2006 20:01 IST
The Congress has asked the government to put a cap on taxes/ cess on petroleum products to prevent a rise in domestic prices.
"Indian National Congress calls upon the government to put a cap against the unreasonable increase in sales tax/ VAT/ cess to control escalations of petroleum products," stated the draft resolution on economic affairs, introduced at the 82nd plenary on Sunday.
The Congress said that though the world prices have increased by as much as three times in the last one year and a half, and thus placed a huge burden on the country, which imported 70 per cent of its oil requirements. The government has refrained from hiking the prices of kerosene but marginally increased the prices of petrol and diesel.
Prices of cooking gas have increased but not as much as they should have. That showed that the government was sensitive to the popular sentiment even though it placed a heavy financial burden on the oil companies and public exchequer.