<b>LTTE imposes 50 cents tax on a litre of petrol/diesel</b>

The Island - Mohamed Rasshid in Digamadulla

Muslim dealers of petroleum products in the Kalmunai area are up in arms against a demand by the LTTE to pay a ‘tax’ of fifty cents per litre of fuel sold.

These dealers were summoned by the LTTE for a meeting at their political office in Kalmunai last week where they were asked to increase the price of fuel by fifty cents and pay it to the LTTE as ‘tax’, sources said.

The dealers had politely declined saying it was not possible to arbitrarily increase fuel prices as they would run into problems with the Ceylon Petroleum Corporation (CPC) that could result in their licences being cancelled. On the practical side, they had pointed out, it would not be possible in any case to charge an additional amount from government vehicles, including those belonging to the police department and the Transport Board, these sources said.

Overcharging clearly violates the agreement dealers have entered into with the CPC, they had pointed out to the LTTE.

They had further explained that long-distance lorries and other motorists would prefer to pump fuel from Ampara, just 10 miles off Kalmunai, if prices were revised in accordance with the LTTE demand.

The LTTE had claimed that petroleum dealers in Batticaloa were abiding by their order and paying a ‘tax’ of fifty cents per every litre of fuel sold.

The LTTE had called for another meeting on July 16 as both parties had failed to reach agreement on this ‘tax’ affair.

‘This is extortion. The LTTE leadership gave an undertaking to government political leaders that the Muslims will not be harassed, but the contrary is happening’, a Muslim businessman lamented.

All this doesn’t help to create a better understanding between the Muslim and Tamil communities, he said.

The Island