The move by Haryana came even as Finance Minister Pranab Mukherjee planned to soon write to Chief Ministers to reduce state levies on at least LPG to reduce the impact of the price hike on the common man.
After West Bengal, Haryana today stepped in to reduce the impact of the latest hike in prices of cooking gas and diesel on the common man by announcing a waiver of the 5% VAT on kerosene.
At the same time, there was also no let up in protests agaist the fuel hike with key UPA leader and DMK supremo M Karunanidhi criticising the decision saying it would badly hit the middle class and the poor.
The move by Haryana came even as Finance Minister Pranab Mukherjee planned to soon write to Chief Ministers to reduce state levies on at least LPG to reduce the impact of the price hike on the common man.
Announcing Haryana's decision, Chief Minister Bhupinder Singh Hooda said with the value added tax (VAT) being waived for kerosene the fuel will be 70 paisa cheaper in the Congress-ruled state and will now cost Rs 14 per litre.
Hooda hinted that the state government would also take more steps to control price rise in the state. The VAT on LPG having already been waived in 2008, the waiver on kerosene today makes Haryana a VAT-free state for these two key items.
He said the state government had decided to waive off VAT in keeping with the directions of the Congress President Sonia Gandhi to minimise the burden on the masses following another round of fuel hike on Friday.
Karunanidhi wanted the AIADMK government in Tamil Nadu to emulate the example of Trinamool Congress-headed government in West Bengal. Chief Minister Mamata Banerjee yesterday decided to withdraw sales tax on cooking gas to partiallly neutralise the impact of the price hike. The decision would reduce the price of a cylinder of LPG by Rs 16.
In Kerala, Chief Minister Oommen Chandy said Government will take steps to reduce hardships to the public. Asked by reporters if Kerala would also waive the cess on LPG as done by West Bengal, he said, "we will do whatever we can. There is no need for any apprehensions."
The situation in Kerala was different from that of West Bengal, he said.
The Centre on Friday increased diesel price by Rs three per litre, domestic LPG by Rs 50 per cylinder and kerosene by Rs two per litre.
"Whenever this issue arises, the Centre tries to justify the fuel price hike ," DMK President M Karunanidhi said in Chennai in his first reaction to the increase in the hike.
The Centre should not rest by merely defending the hike "on some excuse" every time the issue arose, but treat it as its utmost duty to completely solve it as the hike affects public, especially middle class and people living below poverty line, he said in a statement.
Karunanidhi also asked the Tamil Nadu Government to reduce sales tax on fuel prices emulating West Bengal government and also as done by his government in the past.
When DMK was in power, sales tax on petroleum products was reduced twice and subsidy for LPG was also provided.
"West Bengal Chief Minister Mamata Banerjee's announcement of reducing LPG price by Rs 16 could be a guiding force for other governments also. Therefore, the Tamil Nadu Government should also reduce sales tax on petroleum products", he said.
LJP president Ram Vilas Paswan opposed the hike and demanded a rollback in the interest of the public.
"I am opposed to the price hike of diesel, kerosene and LPG cylinders. I request the centre to rollback the prices in public interest," he told reporters in Patna.
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