Orissa cabinet rejects ST move on kerosene

BHUBANESWAR, DECEMBER 30: A move by the Orissa government to levy sales tax on kerosene and match sticks, mostly used by the poor, came in...

BHUBANESWAR, DECEMBER 30: A move by the Orissa government to levy sales tax on kerosene and match sticks, mostly used by the poor, came in for strong opposition in the state Cabinet which met here on Wednesday. The move initiated by the government for rationalisation of sales tax, did not get the approval of the Cabinet.

According to sources, the move was initiated as per the floor rate fixed by the Centre on these items. Official sources maintained that the Central Government decision would have to be ratified by the state government. The proposal was to impose four per cent sales tax on kerosene and match sticks and boxes. But the proposal was shot down by several senior ministers including Water Resources Minister Basant Kumar Biswal and Panchayatiraj Minister Raghunath Patnaik.

The ministers pointed out that as a large number of people in the cyclone affected areas are using kerosene as electricity is yet to be restored fully such a step will be suicidal for the Congress in the Assembly election which is around the corner. Besides, kerosene is mainly used by poor people all over the state, they added.

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Describing such a step as anti-people, the ministers said that it should not get the approval of the Cabinet. Proposals to impose four per cent tax on wheat flour and cattle feed like rice bran and wheat bran also did not get through the Cabinet. The move sparked of heated discussion in the meeting with a majority of ministers opposing it.

A proposal to make the surcharge on businessmen uniform was also rejected by the Cabinet. Businessmen with a turnover between Rs 10 lakh to Rs 1 crore per year pay surcharge of 10 per cent while those with turnover of more than Rs 1 crore pay 15 per cent surcharge. The proposal was to make the surcharge rate uniform at 10 per cent.

The Cabinet, however, decided to double the retainer and daily fees of all law officers in the High Court, tribunals and judge courts.