If tax on fuel is reduced no need for price hike

Published : 9:13 am  May 11, 2018 | No comments so far |  |  (74) reads | 

Life-2By Ajith Siriwardana and Yohan Perera   

Former Minister Ravi Karunanayake said yesterday that if the tax on fuel was decreased temporarily, the fuel prices could have been maintained at the old rates without burdening the people. 
  
He told parliament that the prices of petrol, diesel and gas had to be increased due to the depreciation of the rupee.   


“Milk powder prices are decreasing in the world market but we needed to increase prices due to the depreciation of the rupee against the dollar,” he said.   


Mr. Karunanayake said the country was facing an economic crisis as the Central Bank was not taking steps to strengthen the rupee.”The US Dollar against the Rupee has increased to Rs. 158 today. Our debt stock is US$ 4300 billion. We have to pay an additional US$ 45 billion when the dollar goes up by a rupee. We have had to pay US$ 200 billion due to the increase of dollar against the Rupee by about Rs.6 during the past 3 to 4 months,” he said.   
He said the government should take steps to ensure political stability in the country without dancing to the tune of the IMF. “The rules put forward by the IMF does not suit the country. The government would realise only after an election defeat that what is asked for by the IMF only creates problems for it,” he said.   

He told Parliament that the prices of petrol, diesel and gas had to be increased due to the depreciation of the rupee.   “Milk powder prices are decreasing in the world market but we needed to increase prices due to the depreciation of the rupee against the dollar,” he said.   Mr. Karunanayake said the country was facing an economic crisis as the Central Bank was not taking steps to strengthen the rupee.”The US Dollar against the Rupee has increased to Rs. 158 today. Our debt stock is US$ 4300 billion. We have to pay an additional US$ 45 billion when the dollar goes up by a rupee. We have had to pay US$ 200 billion due to the increase of the dollar against the Rupee by about Rs.6 during the past 3 to 4 months,” he said.   He said the government should take steps to ensure political stability in the country without dancing to the tune of the IMF. “The rules put forward by the IMF do not suit the country. The government would realise only after an election defeat that what is asked for by the IMF only creates problems for it,” he said.