United Democratic Front legislators cycled to the Assembly on Thursday in a symbolic protest against the Left Democratic Front (LDF) Government’s refusal to slash State tax on fuel.
They later walked out of the House, accusing the State Government of “tax terrorism.”
In his walkout speech, Leader of the Opposition V.D. Satheesan, said the Government earned ₹5,000 crore annually from local taxes. However, it was brazenly unwilling to cut local levy on petrol and diesel to help the common folk weighed down by the COVID-19 pandemic.
Other States and Union Territories had cut local fuel tax to help consumers. However, the Kerala Government obstinately refused to follow suit.
Kerala was facing an inflationary spiral due to the rise in fuel prices. The cost of transportation and freight had increased manifold, and Kerala, a predominantly consumer State, bore the brunt.
Mr. Satheesan said the UDF strongly felt the Centre should forsake the prohibitive central cess and additional excise duty it had slapped on fuel.
‘State losing crores’
Congress legislator K. Babu, who moved an adjournment motion, said Kerala lost crores in fuel tax daily because most vehicle owners in border districts were tanking up from neighbouring Tamil Nadu or Karnataka, where the price of diesel and petrol was relatively lesser.
Finance Minister K.N. Balagopal said Kerala had slashed the tax on diesel and petrol by ₹2.37 and ₹1.60 a litre respectively. It had not increased the local levy on fuel since 2018. In contrast, the Oommen Chandy Government had increased fuel tax 13 times between 2011 and 2016.
States don’t benefit
States did not benefit from the Centre’s sizeable cess and additional and special excise duty on fuel. The revenue was for the Centre alone and not channelled to the divisive pool. The Congress should ideally join hands with the LDF to fight the Centre’s trespasses on fiscal federalism instead of erroneously blaming the State Government for the fuel price hike.
Kerala had not reduced its welfare and developmental push despite the Centre’s attempt to stifle the State’s finances. It had offered free COVID-19 medical care and expanded the social welfare net.
The Congress was responsible for de-regulating fuel prices. It had stopped the oil pool account that helped the Centre to cushion the country from the worst ravages of the increase in the international price of crude.
Speaker M.B. Rajesh rejected the UDF’s adjournment motion.
Published - November 11, 2021 09:02 pm IST
