The Hindu Business Line : Oil price hike

With crude oil prices touching an all time high of $68 a barrel, the Central and State governments must reduce their excise duties and sales taxes, until the international price of crude oil comes down. If this means cutting expenditure and subsidies in some sectors it has to be done until the situation attains some semblance of normalcy.

In Tamil Nadu, the Sales Tax on petrol is 30 per cent and that on High Speed Diesel 25 per cent. A uniform sales tax of 12 per cent for all States would bring down the prices of transportation fuels to reasonable levels.

A. R. Damodaran

Cuddalore

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