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This Article is From Jun 26, 2011

Allies angry, Congress lowers fuel tax

New Delhi: The latest round of hike in the prices of diesel, kerosene and LPG has put the government on the back foot, with the allies at the Centre criticising the government. After Trinamool which expressed its unhappiness over the matter yesterday, it was the turn of BSP, NCP and the DMK today to term the government's policies as anti-poor.

"People should oppose the hike in LPG price. Even our party should protest against this. There is no harm in taking up poor people's concerns," said Ajit Pawar, Maharashtra's Deputy Chief Minister.

Uttar Pradesh Chief Minister Mayawati condemning the Centre's move, demanded an immediate rollback. "There has been a significant hike in prices of diesel, LPG etc. which will lead to inflation and the 'aam admi' will barely be able to afford two meals a day. Our party strongly condemns the Centre's move to hike fuel prices and demands an immediate rollback," she said.  

DMK chief M Karunanidhi also pointed out that the poor and middle classes will be badly hit with this hike. Mr Karunanidhi said the Jayalalithaa led AIADMK government in Tamil Nadu should reduce the sales tax on fuel following Mamata Banerjee's example.

The DMK leader also added that the Centre should not come up with excuses everytime and hike fuel prices.

Meanwhile, the Congress-ruled government in Haryana has waived off seven per cent VAT on kerosene, which means consumers will now have to pay 70 paise less.

"The VAT on diesel is the lowest in Haryana and we have completely eliminated VAT on kerosene. There will be no VAT on LPG either. Whatever relief the Haryana government could give to Haryana's 'aam adami', has been given," said Haryana's Chief Minister Bhoopinder Singh Hooda.

On Friday night, the government approved a price hike for diesel, LPG and kerosene. Diesel prices have increased by Rs. 3 a litre, and LPG now costs Rs. 50 more per cylinder. Kerosene prices have been increased by Rs. 2 per litre. The hike in prices is exclusive of Value Added Tax (VAT).

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