TN not to levy sales tax on diesel
Chennai: The Tamil Nadu government has decided not to levy the incremental component of sales tax on diesel, which will reduce the price of diesel by 45 paise a litre. A press release from the government said the increase will work out Rs 1.78 a litre against the earlier Rs2.23. The release also said that the government would lose Rs180 crore a year due to this.

Also, the TN government plans to stick to its decision not to raise fares in State transport corporation buses, which would result in the corporations bearing an additional loss of Rs100 crore. A litre of diesel will now cost Rs35.50.
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CITU complaint to ILO over price index upsets government
New Delhi: The Centre for Indian Trade Unions' (CITU) complaint registered with the International Labour Organisation (ILO) earlier this week against the Indian government for introduction of new series of Consumer Price Index (CPI) numbers with 2001 as the base year has upset the central government. CITU has complained that the central trade unions were not consulted about the revision and the method of formulating the index is faulty.

It has urged the ILO to ask the Indian overnment to set up a Consumer Price Index Review Committee and that the new series be considered only after the report of the committee is made available. CITU's objection comes on the ground that the CPI determines the dearness allowances (DA) for the workers and the new index would reduce the DA.

Government sources said that the trade unions were consulted and they had agreed to release the new figures and a meeting on the decision to release the figures was held in February this year.

Government sources said the new series with 2001 base year is qualitatively a better index than the earlier one since it is more representative in character and reflects the latest consumption pattern of industrial workers covering 78 sectors, eight more than those covered in the 1982 series.
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