Finance Minister T.M. Thomas Isaac has said that the State's net gain on account of additional tax revenue from the increase in prices of petroleum products will be marginal given the extra expenditure it brings along.
Responding to a calling attention motion from Anathalavattom Anandan (CPI-M) in the Assembly on Tuesday, Dr. Isaac said though there would naturally be some addition to the tax revenue, the State would have to shell out at least Rs.100 crore on additional DA instalment to government employees, Rs.40 crore on additional fuel bill of the Kerala State Road Transport Corporation and another Rs.20 crore to run government vehicles. The State was ready to forgo the additional tax revenue if the Opposition would get the Centre to compensate all these expenditures.
Dr. Isaac said the previous United Democratic Front government had not rolled back the tax rates when the first United Progressive Alliance (UPA) government went in for several increases in petroleum product prices. It had enhanced the rate from 23 per cent to 28 per cent. The only occasion when it decided to forgo the additional revenue was when the UPA government raised the fuel prices just before the previous Assembly elections.
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The Finance Minister said he was of the personal view that people of Kerala should join the nation-wide hartal being planned in protest against the increase in petroleum prices which was meant only to help private oil monopolies.