TMC flays imposition of taxes on oil, rail freight

United Progressive Alliance ally Trinamool Congress on Friday criticised Finance Minister Pranab Mukherjee's Budget proposals of imposing taxes on crude oil and levying of service tax on rail freight, saying these would lead to price rise which was 'unacceptable'.

Participating in a debate on General Budget, Trinamool member Ratna De said the imposition of 10.5 per cent service on rail freight had 'nullified' the 'inflation neutral Rail Budget presented by our leader Mamata Banerjee.'

She said there were expectations from the General Budget that steps would be taken to control the 'sky-rocketing' prices of essential commodities.

"But what has happened is just the opposite," De said pointing to imposition of excise duty and reimposition of customs duty on crude oil imports.

"This will have cascading effect and the worst affected will be the poor. We find it unacceptable," she said and asked Mukherjee to 'ponder' over their withdrawal. Referring to imposition of service tax on rail freight, the Trinamool member said this too would lead to inflation.

De also asked the finance minister to pay attention to naxal-affected regions as also SCs and STs. At the same time, she praised the 'dynamic' leadership of UPA chairperson Sonia Gandhi, Prime Minister Manmohan Singh and Mukherjee, and also Banerjee whom she described as 'the most popular leader of West Bengal'.

Under their leadership, India will transform from developing to the developed country, she said.