Punjab govt flayed for hike in power, petrol, diesel prices

Several industrial organisations as well as the Congress have lambasted the state government for imposing a cess on petrol and diesel as well as other taxes during a cabinet meeting on Wednesday evening.
Updated on May 21, 2015 07:25 PM IST
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Hindustan Times | By, Ludhiana

Several industrial organisations as well as the Congress have lambasted the state government for imposing a cess on petrol and diesel as well as other taxes during a cabinet meeting on Wednesday evening.

Member of Parliament (MP) from Ludhiana, Ravneet Singh Bittu, stated that the state government has lost the moral right to remain in power and should cease to rule. He said that the taxes imposed by the government would burden the people to such an extent that they would feel frustrated.

Congress MLA Bharat Bhushan Ashu said, “Intellectual bankruptcy and gross misgovernance of Punjab government has finally started taking fatal toll on the financial sustainability of Punjab. The insensitive increase in the cess on petroleum products and electricity and properties to generate Rs 1,400 crore in a financial year will strangulate domestic as well as commercial budget of everyone,” said Ashu.

He said, “The unwise and predatory move by the Punjab government unveils its anti-people policies and scant regards for public pain and restlessness. Such a move is not only inflationary but will render many commercial enterprises unviable and will force them to close their businesses.”

Auto Parts Manufactures Association also condemned the decision of the state government. It stated that the government has also hiked the price of electricity. “This step has raised a big concern in the industrial sector. By imposing such taxes on different categories like fuel, power and property, the state government has passed on the burden of its own economic failure to the common man,” said Gurpargat Singh Kahlon, the president of the association.

Kahlon said that imposition of Rs 5 for every Rs 100 of the value of power consumed bill as infrastructure development fee has also frustrated the industry as a whole and feel that the day is not so far away when the industry in state will migrate to the neighboring states.

Mohan Singh Bhambra, cashier of the association, said that by imposing Rs 1 as cess on petrol and diesel per litre, Punjab will have the highest rate of tax the petroleum products in the country.”

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