Delhi
Mitra Wednesday ruled out any rollback of duty hike on petroleum products amid
increasing pressure from UPA allies and the opposition.
"No, what roll back?" Mitra said
when asked whether there would be any rollback of excise and custom duty on
petroleum products.
As part of the Budget proposals of 2010-11,
the government hiked customs duty on petrol and diesel to 7.5 percent from 2.5
per cent while excise duty was raised by Re one on non-branded (normal) petrol
and diesel.
Beginning February 27, petrol prices rose
by Rs 2.67 a litre and diesel by Rs 2.58 per litre in
Petrol, in
diesel Rs 32.92 per litre.
While acknowledging that the tax proposals
would have an impact on prices, Mitra said initially it will "be marginal.
We expect this to be absorbed over a period of time."
However, after the Budget, Finance Minister
Pranab Mukherjee had said that increase in excise duty would result in
inflationary impact of 0.41 per cent on the wholesale price index.
"I do agree that my tax proposals
(excise duty increase from 8 percent to 10 per cent on non-oil products) will
have some inflationary ingredient. It will be about 0.41 percent. But in course
of time it will be absorbed," Mukherjee had said.
However, he said the purpose of the duty
hike was to raise additional resources and, therefore, he took the "risk
of having a little inflationary pressure."
He said wholesale price inflation,
currently at 8.56 percent, is primarily because of the rise in prices of wheat,
sugar pulses and rice, which can be tackled only by improving supplies.
PTI
