ID :
156071
Thu, 01/06/2011 - 08:32
Auther :
Shortlink :
https://oananews.org//node/156071
The shortlink copeid
No tax worse than inflation: Chidambaram
New Delhi, Jan 5 (PTI) Sharing the concerns of the common
man, Indian Home Minister P Chidambaram on Wednesday said
"there is no tax worse than inflation", but wondered whether
the government has all the tools to rein in high food prices.
Chidambaram, who held the finance portfolio under the
UPA-I government, said inflation eats away the income of the
families even if they are earning more.
Food inflation rose to a 10-week high of 14.44 per cent
for the week ended December 18, mainly on the back of high
prices of onions and other vegetables. Onion prices increased
by almost 40 per cent on an annual basis, touching Rs 75-80
per kg in the retail market.
Overall inflation stood at 7.48 per cent for the month of
November, 2010.
"... Not sure whether we understand all the factors that
contribute to price rise. Nor am I sure whether we have at our
hand all the tools to control inflation," the minister said.
However, he hastened to add, "Some say we do, some say we
don't (have tools to check price rise). At least in case of
food inflation, I have not heard any one arguing convincingly
that we have all the tools to control food inflation."
Admitting that it was the duty of the government to
maintain price stability, he, however, said "Some
administrative prices have to be corrected."
His remark came in the backdrop of the government
postponing indefinitely a fuel (diesel) price hike despite
soaring crude oil rates.
"I believe that price stability is extremely important,
specially in a poor country. There is no tax worse than
inflation. All that you gain in the strings is lost in the
roundabout," he said.
Be it cars, tyres and CNG or consumer durables like
refrigerators, washing machines or microwave ovens,
manufacturers across different sectors have raised prices in
the last 10 days, citing an increase in raw material costs.
The hike in prices of these items was over-and-above a
rise in the rates for milk, onions, garlic and other
vegetables, which have become expensive in the past few weeks.
PTI BSP
man, Indian Home Minister P Chidambaram on Wednesday said
"there is no tax worse than inflation", but wondered whether
the government has all the tools to rein in high food prices.
Chidambaram, who held the finance portfolio under the
UPA-I government, said inflation eats away the income of the
families even if they are earning more.
Food inflation rose to a 10-week high of 14.44 per cent
for the week ended December 18, mainly on the back of high
prices of onions and other vegetables. Onion prices increased
by almost 40 per cent on an annual basis, touching Rs 75-80
per kg in the retail market.
Overall inflation stood at 7.48 per cent for the month of
November, 2010.
"... Not sure whether we understand all the factors that
contribute to price rise. Nor am I sure whether we have at our
hand all the tools to control inflation," the minister said.
However, he hastened to add, "Some say we do, some say we
don't (have tools to check price rise). At least in case of
food inflation, I have not heard any one arguing convincingly
that we have all the tools to control food inflation."
Admitting that it was the duty of the government to
maintain price stability, he, however, said "Some
administrative prices have to be corrected."
His remark came in the backdrop of the government
postponing indefinitely a fuel (diesel) price hike despite
soaring crude oil rates.
"I believe that price stability is extremely important,
specially in a poor country. There is no tax worse than
inflation. All that you gain in the strings is lost in the
roundabout," he said.
Be it cars, tyres and CNG or consumer durables like
refrigerators, washing machines or microwave ovens,
manufacturers across different sectors have raised prices in
the last 10 days, citing an increase in raw material costs.
The hike in prices of these items was over-and-above a
rise in the rates for milk, onions, garlic and other
vegetables, which have become expensive in the past few weeks.
PTI BSP
