NEW DELHI, June 6 (UPI) -- India has asked all its states to lower taxes on fuels to share the burden of a recent hike in fuel prices.
Petroleum Minister Murli Deora, at the behest of Prime Minister Manmohan Singh, has written letters to the chief ministers of all states, asking them to not only reduce the sales tax on fuel but also forgo the incremental tax on the hike in petrol and diesel prices.
Deora said that the federal government was sharing part of the burden and incurring revenue losses. The minister said the states also should bear part of the load so as to provide relief to the common man.
"The central government, along with government-controlled oil marketing companies, has shouldered about 91 percent of the Finance Ministry's burden while ensuring full protection to economically vulnerable sections of society, with no increase in kerosene prices sold under the public distribution system while imposing a marginal hike in petrol, diesel and liquefied petroleum gas rates," Deora said.
The minister asked states to cut sales tax at least on the incremental hike in fuel prices. "I expect state governments will not be behind in sharing the burden arising from the spurt in international oil prices," the minister wrote.
