Monday, September 26 2005 17:48 Hrs (IST) - World Time -

Chennai: Coming down heavily on the Centre for having raised the prices of petrol and diesel five times in a year, Tamil Nadu Chief Minister Jayalalithaa today (Sept 26, 2005) ruled out a reduction in the sales tax on petrol and diesel to make these products cheaper in the state.

"The Centre should reduce profits of the oil companies to meet the frequent hikes in international crude prices. For every hike in international prices, oil companies get a lot of profit margin', she said, while intervening in a debate on the supplementary estimates in the Tamil Nadu assembly.

It was irrational to demand a cut in Sales Tax, when the Centre did not make any adjustments on excise and import duties on oil. Also, the avenues for many state governments to raise resources for implementing welfare schemes were limited.

She questioned the rationale behind pricing domestically produced crude on par with the imported crude.

Describing the United Progressive Alliance (UPA) Government as 'inefficient' and 'thoughtless', she said they came to power with a promise to help the common man, but only burdened him through such hikes.

The opposition in the state, who were either part of the UPA or supporting it from outside, could not expect Tamil Nadu to reduce the sales tax diesel to 'rescue' the UPA Government, she added.