Budget fuels Trinamul ire - Railways face service tax

New Delhi : Pranab Mukherjee's budget proposals today left the Trinamul Congress fretting over the fuel price hike and fuming over service tax that Mamata Banerjee's railways will now need to pay, underscoring the tensions within the central coalition.

In Calcutta, a top Trinamul leader said party workers would hit the streets in protest tomorrow.

Arch foe Left also spoke the same language, warning of a "massive movement" next month against the increase in the price of petroleum products.

"We will launch a massive movement against the Centre's anti-people and pro-rich moves from a Left rally in Delhi on March 12," Bengal CPM secretary Biman Bose said.

Within minutes of the finance minister's address, Trinamul leaders started echoing the Opposition criticism of the government over the hike in fuel prices.

The criticism deepened as party leaders realised the implications of the finance ministry's proposal — that an exemption from service tax for the railways for transportation of goods would be withdrawn.

"She had no inkling about this move by the finance minister till this morning... she is extremely unhappy," a Mamata aide said.

As a member of the cabinet, Mamata herself did not speak to reporters on either the fuel price hike or the withdrawal of the tax exemption.

Sudip Bandopadhyay, the Trinamul chief whip in the Lok Sabha, and Amit Mitra, the secretary-general of industry chamber Ficci who heads Mamata's railway expert panel, were fielded to express the concerns.

Bandopadhyay said the withdrawal of the exemption would place an "extreme" burden on the railways at a time it was trying not to raise either passenger or freight charges.

"While the central government has given Rs 16,752 crore to railways as budgetary support in its plan allocation, it is in effect taking back Rs 6,000 crore," t2tn quoted Mitra as saying.

Mamata returned to Calcutta tonight with Bandopadhyay and other junior ministers accompanying her. Asked to comment on the budget, she asked Bandopadhyay to brief the media.

"The Union budget may have some good sides but the Centre's sudden decision to hike prices of petroleum products has clouded the good effect," Bandopadhyay told The Telegraph. "We would raise our protest both on the streets and in the House as well."

Earlier, Partha Chatterjee, leader of the Opposition in the Bengal Assembly, said the Centre "did not consult our netri" before announcing the hike. "We have decided to launch a state-wide protest from tomorrow because we cannot accept any anti-people measure," Chatterjee, who had a talk with Mamata before announcing the agitation, added.

Asked if Trinamul would quit the UPA over the hike, Bandopadhyay said: "The question does not arise. But we must protest if the Centre adopts any measure that would affect common people."

Left leaders said the hike would make the lives of the masses more miserable. At Writers', Bengal finance minister Asim Dasgupta said the move would have a cascading effect on food prices. "I appeal to the Centre to withdraw the excise duty hike on petroleum products," he added.

The budget provided a glimpse of the complex relation between Mamata and finance minister Mukherjee.

Mukherjee has frequently reprimanded Mamata at meetings. Yet, just two days back after Mamata presented the rail budget amid Opposition barbs, Mukherjee had walked up to the Trinamul chief, who bent her head as he approached. Mukherjee patted Mamata on her hand and verbally congratulated her.
News From: http://www.Time2timeNews.com