The new Kerala Cabinet, which will be meeting immediately after the swearing-in of the Oommen Chandy Ministry on Wednesday afternoon, will consider a proposal to reduce tax on petrol.

It would also discuss further relief for victims of endosulfan in Kasaragod district.

The reduction is proposed to partially offset the increase in petrol prices. If taken, the decision would bring down prices of petrol in the State by at least Rs. 1.25 a litre. That will entail a loss of about Rs. 50 lakh a day to the exchequer. Currently, the rate of tax on petrol is about 29 per cent.

The State’s revenues from tax on petrol had doubled over the last five years because of increase in prices of petrol. The government will be sacrificing only a portion of that by the proposed decision.

The Hindu will be covering the swearing-in ceremony live from 1.30 p.m. on its website.

RELATED NEWS

Chandy sworn in Kerala Chief Minister May 18, 2011