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Speeches in Parliament Vol. (III)-27

So, ultimately, when we go into the effect on the common man, what is more important is the effect on the wage which goes into his purse, which ultimately affects the consumer price index.

Now, what are those items which go into it? Keronsene : I have not touched kerosene in the budget.

An Hon. Member : Indirectly.

Shri Yashwantrao Chavan : Not by my budget. The increase was announced by Petroleum Minister, and the increase was due to increase in the international prices. This is not a part of the budget proposals. I must say that I had made it a doctrine, not to touch kerosene in the budget. Sugar, tea, coffee, footwear, matches and vegetable products are not touched in the budget. Soap and cotton fabrics are partially there.

As far as soap is concerned, I have exempted laundry soap. About the other soaps, I have made further enquiries as to exactly what has happened and I would like to give certain information. The prices of Lux and Rexona have not changed after the budget. The incidence of duty of Rs. 2.54 per gross has been absorbed by the company. After the budget, the manufacturers have announced the price structure and they have not increase the price. But I know certain retailers are taking advantage of it. I think after some time, this will be adjusted. Otherwise we will have to think of other steps if retailers are taking undue advantage of it. But after the budget proposals were announced, the companies producing these soaps have announced their price structure and they have absorbed the excise duties. The prices are the same. The same thing is true about another popular soap used by poor people-Lifebuoy. The duty on Lifebuoy also has been absorbed by the company. Unfortunately, at the retailers, level, something is happening and we well take care of it.

Before proceeding further, I may say that I have decided to withdraw the excise duty on maida and coarse cloth. (Interruptions). I have done this because of the overwhelming view in my party. Out of deference to my party’s view, I have done it. But I Would ask my party members not to ask for more concessions.

Here I must say one thing. There is one important commitment which as a party we have made. We have accepted the principle of having a children’s charter. A charter for the children. In order to create the financial resources for the fulfillment of the children’s charter we have to impose taxes. Do not forget that we have passed this resolution in the Bombay session. So, I had every justification for what I had done. I do not want to go into the arguments again. Some time or other, our country will have to come forward in accepting taxes whose collections will be earmarked for the children. I am giving this as a forewarning. There is no other alternative except to accept taxes, some time or other, if not on maida but in some other form.... (Interruptions) Though I have withdrawn the excise duty on maida, the provision for children is not withdrawn. It will remain as it is. It will only mean to that extent our deficit will remain uncovered.