Centre should take lead in tax reduction: Karat

CP(M) Central Committee has resolved to carry out a sustained agitation against the increase in prices of essential commodities, including petrol and diesel.

Terming the reduction in sales tax on petrol and diesel by some of the Congress-ruled states as 'tokenism,' CP(M) on Saturday said the Centre has to lead by example by foregoing its share of taxes instead of passing the burden to the state governments.

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"Asking the state governments to reduce sales tax is a diversionary move. It's the Centre that has increased the price and it has to slash them and state governments (including Left Front ruled ones) will follow," the party General Secretary Prakash Karat told reporters in Hyderabad.

"If the Centre takes the lead, foregoing some of its revenues from Excise Duty and other taxes or releases some of the amount from the oil cess pool that it has accumulated, it would be fair to ask the state governments to sacrifice some of their revenue from sales tax," he said when asked if the Left Front governments would also slash taxes.

While Andhra Pradesh reduced the fuel prices on Saturday, some other Congress ruled states have announced that they would slash the oil prices by reducing sales tax.

CP(M) Central Committee has resolved to carry out a sustained agitation against the increase in prices of essential commodities, including petrol and diesel, Karat said after conclusion of the meeting.