The Congress-led United Democratic Front (UDF) on Monday launched an indefinite stir in the Assembly, demanding the government to revoke the ‘‘unfair’‘ tax proposals and the ₹2 cess on petrol and diesel announced in the February 3 State Budget.
UDF MLAs Shafi Parambil, Najeeb Kanthapuram, Mathew Kuzhalnadan, and C.R. Mahesh began an indefinite satyagraha on the steps leading to the Assembly hall soon after Leader of the Opposition V.D. Satheesan made the announcement in the House.
Reacting to the UDF decision, Finance Minister K.N. Balagopal defended the Budget proposals and denied that the hikes were excessive. The proposals are in the best interests of the State, and were necessitated by the adverse fiscal policies of the Central government, Mr. Balagopal said.
The Minister’s staunch defence has come at a time when speculation is rife that the government would review the fuel cess.
Announcing the stir, Mr. Satheesan slammed the 2023-24 Budget presented by Mr. Balagopal as the worst one in the history of the State. The government’s tax proposals have dropped like a thunderbolt on the people of Kerala who are reeling under the consequences of the floods and other natural calamities, he alleged.
‘’The State Government has thrust an additional burden of ₹4,000 crore on the people. This involves direct tax proposals worth ₹3,000 crore and indirect ones for ₹1,000 crore. These proposals are unscientific and are sure to upset the State’s economy and normal life,” Mr. Satheesan said.
Mr. Balagopal said certain tax hikes ‘‘on a limited scale’‘ are unavoidable for the State’s forward journey. No government can say ‘no’ to taxation. The Oommen Chandy-led UDF government, between 2011 and 2015, had hiked the tax on petrol 17 times. It was reduced by the Pinarayi Vijayan-led LDF government in 2018 and were never hiked since, Mr. Balagopal said.
Mr. Balagopal accused the UDF of supporting the fiscal policies of the BJP-led Central government. In its most recent decision, the Central government had whittled down the borrowing limit of the State for the current quarter to ₹937 crore. The Centre was collecting ₹30 per litre of petrol and ₹27 per litre of diesel sold in the State by way of cesses and surcharges, and the Opposition was silent on this point, he alleged.
YC protests
The Youth Congress (YC) organised a protest march to the Assembly demanding repeal of the fuel cess. Youth Congress workers set fire to an old motorcycle, which they had brought with them, during the march which began from the Martyrs’ Column.
The police had set up barricades on the road leading to the Assembly. The fire was quickly put out by the Fire and Rescue Service. The police resorted to the water cannon to disperse the protestors.
Several protesters were later arrested and removed by the police. Earlier, inaugurating the protest, Mr. Satheesan blamed the LDF government for overburdening the people with its tax proposals. The Congress will step up protests against the proposals, he said.
