Kerala gives up tax on petrol price hikes

THIRUVANANTHAPURAM: Bringing some relief to people hit by petrol price hike, the Congress-led UDF government in Kerala today decided to forgo the additional tax accruing to the state exchequer from the latest increase.The measure, announced by Chief Minister Oommen Chandy in the Assembly, will reduce the petrol price in the state by 37 paise per litre from the Rs 1.82 hiked through yesterday's decision by the oil companies.The Assembly also unanimously adopted a government resolution urging the Centre to take back the powers given to the oil companies to determine petroleum prices.Meanwhile, transport sector unions affiliated to Left parties called for a dawn-to-dusk motor strike in the state tomorrow demanding roll back of the hike.The resolution was adopted by the House after a three-hour discussion on an adjournment motion moved by opposition LDF.Moving the LDF resolution, former Finance Minister T M Thomas Isaac (CPI-M) made a scathing attack on the UPA government for repeatedly increasing petroleum prices and making people's life miserable at a time when inflationary pressure was unbearable.Isaac alleged frequent price hikes were meant to bring "undue" benefits to big corporates which had entered the oil sector in a big way.The House, however, rejected the LDF resolution after putting it to vote but adopted unanimously the resolution moved by Chandy which wanted the Centre to re-introduce the government regulated system of determining petroleum prices.Cutting across party divide, members from both sides expressed concern over the adverse impact of frequent petroleum price hikes on the price situation in a consumer state like Kerala.The ruling side, however, sought to deflect the opposition criticism arguing that when LDF was in power it never gave up the additional tax as the present government had done after it came to power in May. The Opposition wanted the resolution to urge the Centre to roll back the latest hike.Winding up the discussion, Chandy said the UDF government was doing whatever possible within its limits by waving the additional tax to bring some relief to the people.This was the third time that the UDF government was relinquishing additional revenue from the petroleum price increase since it came to power in May.