Kozhikode: In a step aimed at providing some
relief to the common man from the fuel price hike, Kerala
government today announced that it would waive the additional
sales tax revenue of Rs 108 crore generated on petrol sales.
"The present price hike will earn Kerala additional sales
tax revenue of Rs 108 crore, which will be waived. This will
result in petrol price coming down by 70 paise in the state,"
Chief Minister Oommen Chandy said while speaking to reporters
on the sidelines of a function here.
He said he had held discussions with Finance Minister K M
Mani and UDF leaders before taking the decision.
Chandy said the UDF government had waived about Rs 400 crore
additional revenue generated on account of increasing prices
of petrol and diesel after coming to power four months back.
He said the previous CPI(M)-led Left Democratic Front
Government had waived sales tax on petrol just once when
prices were increased 16 times. LDF government had earned
additional revenue of Rs 600 crore during its tenure, but had
not adopted a people-friendly approach, he said.
Chandy also urged the opposition to withdraw their ongoing
agitation in protest against the hike, which saw violent
protests in the last two days and three government vehicles
He also urged the Kerala Motor Vehicle Co-ordination
Committee to give up its 12-hour `motor strike` call on Sept
Chandy had earlier said that in a democracy people have
every right to protest, but that none would be allowed to take
law into their hands and resort to violence.