Chennai: With train fares of all AC classes and freight services to cost more from Monday due to service tax, Tamil Nadu government on Sunday demanded its rollback saying the move would only increase inflation.
Strongly criticising the UPA for increasing the fares, Chief Minister J Jayalalithaa said the move was against the people's interest and would increase inflation.
"While I strongly condemn the Centre for its act against the people's interest, I urge the Centre to immediately roll back the service tax," she said in a release in Chennai.
Train fares of all AC classes will become costlier by more than three per cent from Monday. Service tax of 12.36 per cent will also be imposed on rail freight from Monday.
Observing that the people and economists were demanding the Centre to take steps to contain price rise, Jayalalithaa said, "It is totally contradictory. It is an injustice caused to the poor and middle class families".
Jayalalithaa also attacked the UPA saying implementation of service tax was already on the proposals of the rail budget that was presented early this year.
"The implementation of service tax by the Centre was put on hold for six months. The decision to implement service tax comes within a week of Trinamool Congress, which was holding railway portfolio, exiting from the UPA government. TMC had been consistently opposing the service tax being levied on these services", she said.