Orissa not to slash tax on fuel

Bhubaneswar: Rejecting the Centre`s proposal to slash tax on diesel and LPG in order to reduce burden on the people, Orissa Government today said the UPA government had no right to make such suggestions.

"The Centre has no right to put pressure on the state governments to reduce tax. The UPA government has been working for the interest of the oil companies instead of looking after the people," Finance Minister Prafulla Ghadai told reporters here.

Terming the recent hike in the price of disel, LPG and kerosene as "uncalled for," Ghadai said that the price of crude oil in international market had come down.

Stating that it was the responsibility of the Centre to regulate price of fuel, the finance minister alleged that the state government were unnessarily burderned by hiking price of fuel and LPG.

Asked on the neighbouring West Bengal chief minister`s announcement to reduce sale tax on LPG, Ghadai said "as such, Orissa Government has been charging 18 per tax while other states impose 20 per cent tax on LPG."

Orissa Governemnt has no plans to slash tax now, the finance minister said.