'Govt. should have stood ground on UST'

By Our Staff Reporter

PONDICHERRY, SEPT. 6. The secretary of the Pondicherry State committee of the CPI (a constituent of the Congress-led secular front), Mr. N. Kalainathan, today expressed shock and surprise at the acceptance of the uniform sales tax by the government.

In a statement here, Mr. Kalainathan said while measures relating to tourism development and education deserved to be welcomed, the Government should have stood its ground on matters on which it had full authority.

The acceptance of the uniform sales tax because of ``pressure'' from the Centre and if the UST was not implemented the Central grant and assistance would be denied to Pondicherry was an improper argument. Mr. Kalainathan said the UST was conceded by the previous DMK regime and the then Chief Minister Mr. R. V. Janakiraman at the conference of the Chief Ministers in November 1999, and Mr. Shanmugham should have opposed the UST tooth and nail.

The commercial taxes fell within the jurisdiction of the State and the Centre could not intimidate or pressure and also withdraw any grant to the Government.

Mr. Kalainathan said reduction in taxes for the Indian Made Foreign Liquor was unnecessary. The budget did not project a joint preparation of the proposals, he said.

The Janata Dal (S) has criticised the adoption of the uniform sales tax. (Neither the CPI nor the JD (S) has any representative in the Assembly but they form part of the front headed by the Congress).

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Section  : Southern States
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