*3)Lefties (commies)are saying that central government should not increase oil price, but reduce excise duty and other taxes. States in which lefties are ruling is levying sales tax between 24.6% to 29.1%. Why they are not withdrawing sales tax on Petrol. If they reduce sales tax from 29% to 12.5%, people of those states will gain more than Rs.3/-per litre. Lefties are playing vote bank politics.Why can't they withdraw support for UPA government at the centre? They are enjoying the benefits of both ruling party and the opposition.
4) Even if the entire burden of international price hike of oil is suffered by the centre, the centre will run a deficit budget which in turn will lead to inflation. For meeting the deficit, the centre will have to do any of the following or a combination of them 1) borrow from others 2) Increase various taxes 3) Increase money circulation by circulating more money. All these steps will have its influence in Inflation and increasing the agony of the people.
Conclusion.
This is the part of a cycle which we will have to suffer. Root cause is Mr. Bush, Mr.Sadam and few others.
