End octroi, local taxes to curb inflation: PM

Saying that inflation posed a serious threat to the growth momentum and affected the poor and vulnerable sections of society, Prime Minister Manmohan Singh on Friday called for waiving mandi, octroi and local taxes, which impede the smooth movement of essential commodities.

Addressing the second annual conference of chief secretaries of states in New Delhi, Singh said that though the economy has been on a high growth trajectory for the past few years, inflation posed a "serious threat to the growth momentum".

"There seems to be a strong case for waiving mandi taxes, octroi and local taxes, which impede the smooth movement of essential commodities," he told the top bureaucrats.

He said there was a need for a "paradigm shift" in the institutional arrangements for improving the availability of various commodities to meet the higher levels of domestic consumption.