Reduce fuel prices, JVP urges Govt

COLOMBO: The JVP politburo in a statement issued yesterday requested the Government to reduce fuel prices with immediate effect by way of reducing the tax levied on fuel imports and recovering the resultant income loss through a new tax regime targetting the high income earning sections of the population.

The release said the government on June 10 decided to increase the prices of all varieties of fuel. Accordingly the price of petrol has gone up by Rs. 5 per litre, diesel by Rs. 3 per litre and kerosene by Rs. 5 per litre. This is the second time the government has increased fuel prices within the last two months.

It is true that the price of fuel has increased in the international market. But the current solution to that problem is not to heap additional burdens on the people by passing it on to the consumers.

It is no secret that the government imposed taxes on fuel importer. If such taxes could not be withdrawn completely the government should try to partially reduce them. In order to recoup the loss of income incurred by such a move the government can move into levy some other taxes targetting the high income groups. Reduction of the price of fuel in that manner will help ease the economic burdens of the consumers.

The statement added that the price of fuel is determined by adding the entire costs of the Ceylon Petroleum Corporation to it. The Government should deviate from that policy by taking effective steps to transform the CPC into a successful state institution.

The government should also take steps to provide a fuel subsidy to low income groups such as Samurdhi beneficiaries and public servants who patronised public transport. If needed the government can also impose heavier taxes on liquor and cigarettes as it would not be considered as an action against the common masses.

The government should try to maintain fuel prices at the minimum level possible as it would help bring down the cost of living by reducing transport and production costs and the prices of essential commodities.