NCP opposes S-T cuts in Maha

Maharashtra government's proposal to cut the sales tax on petrol and diesel to cushion the effect of the recent hike in petroleum products has run into rough weather with the Nationalist Congress Party (NCP) deciding to oppose it.

NCP is a coalition partner in the state government.

Meanwhile, Chief Minister Vilasrao Deshmukh has instructed Chief Secretary D K Shankaran to prepare a note on the proposed cut and place it before the state Cabinet on Wednesday.

Speaking to Business Standard, NCP's state unit spokesman Ratnakar Mahajan, said, "The state government should discuss with the coalition partners the issue of cutting sales tax on petrol and diesel before putting the proposal before the Cabinet."

"If the proposed cut causes major loss of revenue to the state government, then we will oppose such a cut. One should not forget that administrative expenses of the government are also going to increase simultaneously because of the hike in diesel and petrol prices," Mahajan added.

However, it seems that there are two views within the NCP on the issue. Deputy Chief Minister R R Patil told reporters that the NCP is not opposed to the cut and it was in fact NCP's proposal to cut the sales tax.

Another senior minister from the NCP said, "If we are seen opposing such a populistic move when the Zilla Parishad elections and municipal corporation elections are round the corner, then we will be digging our own grave."

The state finance minister, Jayant Patil, who belongs to the NCP, is abroad and was not available for comment. He is likely to be back only on 15 June.

It was reliably learnt that the NCP leader and Union Agriculture Minister in an interview from Washington supported the petroleum price hike and suggested that people should be ready for such hikes as prices of crude oil are increasing constantly internationally.

Pawar's interview seems to have given a signal to NCP activists to oppose the proposed sales tax cut.

According to political observers, Pawar wants to take on the Congress in the state. This is the second irritant to the government in as many weeks after the candidature of industrialist Rahul Bajaj for the Rajya Sabha.