UNI

Chennai, Jun 12: Reversing his earlier stand, Tamil Nadu Chief Minister M Karunanidhi on Sunday announced waiver of Sales Tax on the increased price of diesel in the State.

After the Centre increased the prices recently, the diesel prices went up by Rs 2.23 in Tamil Nadu.

In a statement here, Karunanidhi said the Sales tax component of 0.45 paise on this would be waived. This means that the effective increase in the price of diesel per litre would be Rs 1.78 per litre.

Karunanidhi's statement, however, did not make any reference with regard to petrol, indicating that there would be no change in the price of petrol.

Karunanidhi said the state government would incur an annual loss of Rs 280 crore (Rs 180 crore due to waiver of Sales Tax on the increased price of diesel and Rs 100 crore for not increasing bus fare). "Though there are suggestions to marginally increase the bus fare in the state to offset the loss, the government ourightly rejected it in the interests of passengers, which means the State Transport Corporations will incur an additional burden of Rs 100 crore , apart from the Rs 180 crore by the government.

"The total loss suffered by the state per year will be Rs 280 crore," he said and added this decision would go well with the people.

At a time when the Opposition parties and the constituents of the DMK-led DPA in the State expressed displeasure over the hike, Karunanidhi initially ruled out reduction in Sales Tax for diesel and petrol, saying such a step would necessitate increasing the bus fares in the state.

The decision on the waiver followed his meeting with Union Petroleum Minister Murali Deora here yesterday.

It also comes on the eve of the agitation announced by the AIADMK to condemn the hike in prices of petrol and diesel effected by the Centre.

Karunanidhi said whichever party was in power at the Centre, increasing the prices of petrol and diesel had become inevitable due to spiralling prices of crude oil in the international market. There could be no two opinions in a democracy that whenever the prices were hiked, the ruling dispensation justified it and the Opposition criticised it.

"But the Centre, despite being pushed to a corner to effect the hike, had postponed it on several occasions. It had no other alternative but to effect the hike despite the coalition partners in the UPA and Congress President Sonia Gandhi, who is the Chairperson of the UPA, not welcoming it." Earlier in the day, AIADMK Supremo J Jayalalithaa accused the Chief Minister of adopting 'double standards' by stating that if the Sales Tax on petroleum products were reduced, bus fares had to be hiked.

She wanted the Chief Minister to reduce the Sales Tax on petroleum products to bring down the prices of petrol and diesel in the state, as advised by him to the previous AIADMK regime.

Jayalalithaa also reminded Karunanidhi of the poll promise that if the DMK was voted to power, it would bring down the fares of State Express Transport Corporations on par with the second class fares in Railways and sought its implementation.