FM tackles inflation

BL reports in a frontpage lead:

Reacting to the CII President, Mr R. Seshasayee's comment that differential taxation on cement is an attempt to influence and control prices, Mr Chidambaram pointed out that a month ago he had asked the industry to hold prices and cautioned that "entrenched core inflation" would work to its disadvantage.

"A month back at a FICCI meeting, I had asked all of you (industry) to moderate and maintain stable prices and ensure that there is no entrenched core inflation. I am thankful to everyone who did so, but the cement manufacturers did not do so," he said. The Finance Minister said that pricing power has returned to the cement industry and prices have gone beyond reasonable levels.

The dual duty was intended to reward those with an inclination to hold price line and tax those who did not. "I don't know if this (differential tax) will work," he said.

And we call him reform minded!