Kerala CM Satheesan rejects immediate fuel tax cut
Kerala CM Satheesan rejects immediate fuel tax cut
VD Satheeshan


Thiruvananthapuram, 02 Jun (HS):

The first adjournment motion notice of the 16th Kerala Legislative Assembly was moved on Tuesday by the Opposition over the issue of rising prices, triggering a heated exchange between the ruling UDF government and the Opposition led by the CPI(M).

Former Finance Minister and CPI(M) legislator K.N. Balagopal moved the motion, demanding that the House suspend regular business to discuss the sharp increase in the prices of essential commodities, fuel and cooking gas. He urged the government to reduce the additional state taxes on petrol and diesel, arguing that Kerala was now in a financial position to provide relief to consumers. Balagopal also called for tax concessions on LPG cylinders, saying soaring cooking gas prices had placed an unbearable burden on households and businesses, with even hotels struggling to remain viable.

Referring to the previous UDF government's stance when it was in the Opposition, Balagopal recalled that Chief Minister V.D. Satheesan had then demanded reductions in state taxes on fuel. He said it was only fair for the present government to pass on the additional tax revenue earned from rising fuel prices to the public and sought a clear commitment from the Chief Minister.

Responding to the motion, Satheesan rejected the demand for an immediate tax cut, saying the government would closely monitor the situation before taking a decision. He pointed out that the previous Left Democratic Front (LDF) government had enjoyed additional revenue of around ₹3,100 crore from fuel taxes but had not reduced taxes even once. He also cited remarks made by former Finance Minister Dr. Thomas Isaac, who had defended the decision not to reduce fuel taxes during the LDF administration.

The Chief Minister said previous UDF governments, including the one led by Oommen Chandy, had forgone additional fuel tax revenue on multiple occasions. He claimed Kerala had recorded the highest inflation and price rise in the country over the past 11 months and blamed the previous government's failure to intervene effectively in the market. Satheesan also said the government was burdened by liabilities of ₹2,893 crore owed to the Civil Supplies Corporation and argued that these dues needed to be cleared to enable effective market intervention and price control measures.

He further criticised the LDF government's decision to increase the fuel cess by ₹2 per litre at a time when fuel prices were already high.

After hearing the government's response, Speaker Thiruvanchoor Radhakrishnan disallowed the adjournment motion. Opposition Leader Pinarayi Vijayan termed the decision unfortunate and accused the government of avoiding a detailed discussion on an issue that was severely affecting ordinary people. He also criticised the government for failing to hold the Centre accountable for the continuing rise in fuel and cooking gas prices.

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Hindusthan Samachar / Arun Lakshman


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