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High tax rates accountable for steep prices: Swamy
June, 16th 2008

 Exorbitant tax rates and increasing money supply were the main reasons for the steep hike in prices of essential commodities, Janata party president, Dr Subramanian Swamy, said.

Speaking to reporters in Madurai, he demanded that the Centre withdraw the additional excise duty of Rs 18 and Central excise duty of Rs three on petrol. The Tamil Nadu government should withdraw Rs 7 sales tax per litre of petrol,and Rs.3.50 per litre of diesel to reduce the petrol price to Rs 25 a litre and that of diesel to Rs 24 a litre, he said.

He said petrol was cheaper even in Pakistan, where inflation was high. The present inflation rate in India is based on the previous petrol price hike and could zoom further, he added.

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