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Transporters want diesel price made negotiable; Govt focuses on essential goods 

Jyoti Mukul  
New Delhi, Oct 25: The All India Motor Transport Congress (AIMTC) has ruled out any further talks with the government unless diesel price is made negotiable.

Speaking to The Financial Express, JM Saksena, secretary general, AIMTC, said that they were always open for talks with the government but there was no meeting ground since the government had said that diesel price was notnegotiable.

Meanwhile, the Indian Foundation of Transport Research and Training claimed that AIMTC is caught between big transporters, mainly in Tamil Nadu, Karnataka, Maharashtra and some big cities, who want the strike to continue till the hike is taken back and small operators who believe the agitation will be of no help.

AIMTC claimed that all its associations were together on fighting the diesel price hike and questioned the credentials of unions which have withdrawn from the strike.

The central government, on its part, asked the states to utilise passenger buses and other local transport for moving essential commodities. In a letter addressed to all the chief ministers, Shanta Kumar, Union minister of consumer affairs and public distribution, asked the states civil supplies corporation to use their trucks for transporting essential commodities.

Kumar asked the state governments to take stringent action against hoarders and those who indulge in unfair trade practices under the Essential Commodities Act and Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act.

The supply of onions, potatoes and tomatoes has been affected due to non-operation of trucks on long routes. However, an official press release said that foodgrains stocking position was comfortable in all states and union territories for meeting the requirements of public distribution system for three to six months.

Though the government is claiming that the strike has had a limited impact due to differences within the transport community, prices of essential commodities have gone up.

According to AIMTC, transporters are not against international price parity but there is a scope for reduction in taxes. Citing an example, Saksena said the diesel price had gone up by as much as Rs 4 in Tamil Nadu against an escalation of Rs 1.65 in the import cost.

This was because of 30 per cent customs duty, 16 per cent excise duty, sales tax varying from 11 to 21 per cent and refining cost. Due to the hike in the basic price, there was pro-rata increase in levies.

In a press release, AIMTC maintained that the diesel hike could be withdrawn by bringing down the sale tax to a uniform 4 per cent across the country.

"A cut in the sales tax rate would not lead to a fall in revenue for the state governments as diesel consumption would go up if the hike was rolled back," the release maintained.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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