Antony asks states to waive additional sales tax on oil

Days after the hike in petrol prices, defence minister AK Antony on Saturday advised the states to follow the model of Kerala and waive the additional sales tax revenue generated on oil to provide relief to common man.

Days after the hike in petrol prices, defence minister AK Antony on Saturday advised the states to follow the model of Kerala and waive the additional sales tax revenue generated on oil to provide relief to common man.

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Hailing Kerala government's decision to waive the additional sales tax revenue of Rs 108 crore generated on petrol sales, the defence minister said other states can also follow the example set by the southern state.

"Price hike of petrol or any other essential commodities is worrisome as it affects the common man. The only way out is that other states can also follow the path shown by Kerala," Antony said.

He was speaking after a function organised to felicitate senior Malayalam journalist and Mathrubhumi bureau chief N Asokan in New Delhi.

"Centre doesn't gain anything when the prices of petrol increase. But the states generate huge revenue through the price hike. The example shown by Kerala is inspiring for other states too. If they also follow this way, it will give slight relief to the people," Antony said.

The defence minister pointed out that the oil companies were forced to increase petrol price as the rupee touched a two-year low against the US dollar.

The losses have increased the cost of importing crude oil, he said.

Earlier, addressing the function organised by the Kerala Union of Working Journalists (KUWJ), Antony hailed the contribution of Delhi-based Malyalee journalists towards the development of the state.

Minister of state for home Mullapally Ramachandran and senior journalist TVR Shenoy also addressed the gathering of journalists.