UDF to observe April 1 as ‘black day’ against LDF’s tax hikes in Kerala

Statewide protest falls on the day LDF government’s 2023-24 fiscal budgetary recommendations will kick in

The United Democratic Front (UDF) will observe April 1 as a ‘black day’ to protest against the State government’s taxing and “unjustified budgetary” levies on fuel, liquor, piped water and power. The Statewide protest falls on the day the Left Democratic Front (LDF) government’s 2023-24 fiscal budgetary recommendations will kick in.

The ₹2 special cess on petrol and diesel retailed in Kerala will come into force from April 1. The increased water tariff has already come into force. The Kerala State Electricity Board (KSEB) has proposed a hike in power drawn by domestic consumers. The Kerala State Electricity Regulatory Commission is poised to take a call on the government’s proposal.

UDF convener M.M. Hassan said the government has “fleeced” the public to make up for the enormous losses incurred by the exchequer due to the government’s financial mismanagement. Tax revenue collection is at an all-time low due to corruption and administrative complacency.

‘Tax robbery’

He said the CPI(M) pursues the same fiscal line as the Centre by resorting to “tax robbery”. The new taxes will push up inflation and upend family budgets. The price of hotel food will skyrocket. Commuting and freight movement will become dearer, he added.

The UDF dismissed the State’s “excuse” that the fuel cess will help the government raise ₹11,000 crore for dispersing social security pensions to an estimated 62 lakh needy persons. It said the proposed power tariff hike targets domestic consumers disproportionately.

The government, however, blamed the Centre for the State’s financial crisis. It claimed that the stoppage of GST compensation payments cost the exchequer an estimated ₹40,000 crore.

Moreover, the Centre slashed the revenue deficit grant for States and created a separate head of account for its massive special on fuel to avoid giving a component of the levy to provincial governments from the divisive pool.

The LDF also complained that the Centre limited Kerala’s borrowing limit by factoring in funds raised for infrastructure development by special purpose vehicles into the State’s overall public debt.

The UDF, however, was not buying into the argument. Mr. Hassan said the previous Oommen Chandy government cushioned the public from the Centre’s fuel price hike by forgoing the State’s levy on fuel.

He said UDF workers will fan out across the State on April 1 wearing black badges and raising black flags in protest against the “tax robbery.”