Diesel VAT hike fuels Congress-Akali war of words - CM acting in huff post denial of funds, says Cong

Sunday, 05/10/2014

http://www.tribuneindia.com/2014/20141005/punjab.htm#2

Fazilka : The Leader of Opposition in the Punjab Assembly, Sunil Jakhar, has demanded a rollback of the hike in VAT on diesel. The state government had yesterday hiked the VAT on diesel, thus increasing its price by 58 paise.

Jakhar has termed the hike as “betrayal” by the SAD-BJP coalition with the farmers and the common man. “The financial crisis facing Punjab and the bickering with alliance partner BJP has made Chief Minister Parkash Singh Badal jittery,” he said.

The Congress leader was talking to The Tribune after attending the monthly meeting of the party workers of Fazilka district here today.

“The coffers are empty and now the BJP-led Union Government’s refusal to grant financial assistance to Punjab has left the Badal father-son duo in a huff,” said Jakhar.

He said the farmers had already been paying maximum VAT on diesel and petrol in Punjab and further increase had put extra burden on them.

Lashing out at the Centre, Jakhar said its intention to fight against terrorism was exposed when it refused to join action against ISIS.

“The law and order situation in Punjab is in its worst phase. Two youths were shot dead in Jamalpur in the presence of police officials, who were friendly with the assassins,” he said.

The Leader of Opposition said the Chief Minister, during his visit to Abohar on September 15, had announced that the canals would be maintained properly. “Despite the assurance, nothing has been done so far,” he said.

Rates increased to mobilise funds, claims SAD

Chandigarh : The Shiromani Akali Dal (SAD) today justified the state government’s move to increase VAT on diesel, cold drinks and cigarettes to mobilise funds for development.

Maheshinder Singh Grewal, SAD general secretary, said the rate of diesel in Punjab was among the lowest in the country. He claimed it was appropriate for the government to increase VAT by 1 per cent keeping in view the state's agrarian economy.

Grewal lauded the government’s bold move to increase VAT on cold drinks and cigarettes by 5 and 9.5 per cent. He said the funds so generated could be used to give further boost to development.

Countering Partap Singh Bajwa's statement on the issue, Grewal said the Punjab Congress chief had only been trying to ward off criticism for his own failures. “Bajwa finds himself completely isolated in Punjab. He has had to even bear the brunt of the party high command's anger recently due to his repeated failures at the hustings,” he said.

Bajwa had yesterday said: “Chief Minister Parkash Singh Badal owes an explanation to the people as to why VAT has been increased by 1 per cent in Punjab when it is already being charged at 8.75 per cent. You can’t have double standards on every issue.”

The SAD general secretary said it was unfortunate that the PPCC president never voiced his resentment when petrol and diesel rates were increased many a time during the UPA rule. He also asked Bajwa to explain why he did not appreciate the move of Prime Minister Narendra Modi to cut petrol prices twice recently. “.