Kerala to forgo additional sales tax on diesel

THIRUVANANTHAPURAM: The state government on Monday decided to forgo the additional sales tax to be accrued by way of the recent increase on diesel price.Chief Minister Oommen Chandy announced this in the Assembly while replying to an adjournment notice given by the CPM-led Opposition on the issue.With this decision, the diesel price would come down by 75 paise and it will come in to effect from Tuesday midnight. The state exchequer would lose Rs 142.2 cr by giving up the tax, he said.The state had given up the tax when petrol price was hiked last month.However, the CM was not ready to give any explanation on why the state government was not willing to do a similar exercise with the kerosene and LPG price hike.Though the Opposition members repeatedly demanded the Chief Minister to provide a subsidy for kerosene and LPG, Chandy did not give any reply.To a query from former Finance Minister Thomas Isaac, the Chief Minister said if necessary the government would forgo the additional tax in future also whenever there is a fuel price hike.However, the Opposition staged a walk out protesting against the fuel and LPG price hike.The issue was raised by former Finance Minister Thomas Isaac during the Zero Hour as an adjournment motion and he wanted the state government to devote time for discussing the issue which has raised serious concern among the common man.The Opposition charged that the LPG price hike was not justifiable.Replying to the motion, the Chief Minister said that the state government realises the fact that the frequent fuel price hike has put the lives of common man in hardship."Unlike the previous LDF Government, the UDF was ready to forgo the additional tax the state would get," the Chief Minister said.Even though the UDF Government had decided to forgo the additional tax when the petrol price was hiked recently, the Opposition had went ahead with the strike.Now again the state government was ready to forgo the additional tax of diesel. The Opposition should support the government's initiative in this, he added.However, the CPMled Opposition was not ready to concede to the demands made by the Chief Minister. Led by V S Achuthanandan, the Opposition members walked out of the House on the first day of the session after the Governor's Address.