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| Hike in fuel prices: CAPD, Finance Ministers at loggerheads | | | Abdul Majid
Early Times Report
Srinagar, July 26: While people of Jammu and Kashmir are up in arms over the hike in rate of tax on petrol and diesel, this "controversial" decision seems unilateral decision of Finance Minister, Dr Haseeb Drabu who hasn't taken other concerned ministers into confidence. Not even Minister for Consumer Affairs and Public Distribution who regulates prices in the state.
The CAPD Minister Chowdhary Zulfikar Ali told Early Times he has never been consulted by the Finance Minister or any official over the decision to hike the rate of tax. This is despite the fact that the prices in consumer affairs including that of fuel in the state are regulated by the CAPD Ministry. "We are the price regulating authority, but, neither have I given any consent for the hike in rate of this tax nor, this issue was ever discussed with me… I am no party to this decision," the Minister said, adding "Mera iss Say Koi Lena Dena Nahin." At a time when state's economy is struggling to emerge out of the aftereffects of devastating floods of 2014, the state government has unexpectedly increased the tax rate on sale of motor spirit and diesel, something which has burdened the common man further.
Earlier the rate of tax on petrol was 20 percent which is 24 percent at present. Likewise, for diesel the rate of tax is 16 percent now as against 12 percent earlier.
The increase in tax rate means the price of petrol and diesel has gone up by Rs 2.20 and Rs 1.76 in J&K respectively. Diesel is now sold at Rs 53.27 a litre and petrol Rs 72.76 a litre.
Though the order in this regard was issued by Navin K Choudhary, Commissioner Secretary, Finance Department, sources said it was done on the directives of the Finance Minister. Dr Drabu has publicly supported the decision hinting that there could be no rollback.
On July 25, Dr Drabu almost ridiculed at the critics of the decision. Justifying that stakeholders cannot be taken onboard before taking such decisions, Dr Drabu said what has been done is aptly right.
To a question that it was not right time for the tax hike as financially suffering flood victims await compensation, Dr Drabu said: "I want to ask them (victims) that has mobility of cars come down or petrol consumption come down(post floods). You still find streets clogged with traffic."
"Consumption of petrol in the Jammu and Kashmir is around 20 lakh litre and diesel 30 lakh litre. When state increases the tax it means people have to pay extra money and at the same time the cost of transport would increase which automatically means inflation," said a professor of Economics.
From Jammu Inc to its Kashmir counterpart nobody is happy with the tax hike. The Jammu Chamber of Commerce and Industries President Rakesh Gupta said the development "can't be taken in a positive sense." "The government says this tax rate has been hiked for rationalization but if they mean rationalization than tax on many things needs to be reduced. Rationalization has to be in toto," Gupta said.
The Kashmir Chamber of Commerce and Industries President Sheikh Ashiq said "humane approach of the government should have prioritization of rehabilitation of flood victims than sucking their blood further through such grossly inhumane decision."
Senior National Conference leader Ali Muhammad Sagar while terming the decision "anti-people" dropped a bombshell. Talking to Early Times, Sagar said: "At the recent Srinagar board meeting, much in the presence of Chief Minister Mufti Sahib, I made it clear to Drabu Sahib that his inexperience was proving disastrous for the state and that he should learn the skills atleast from experienced hands like previous Finance Ministers Rather Sahib and Bag Sahib." |
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