UDF launches protest against tax hike proposal

TRIVANDRUM:THE Congress party-led United Democratic Front (UDF) in Kerala launched a state-wide agitation on Friday against the proposal to steeply hike taxes fuelling inflation.

The opposition coalition said if the legislative assembly clears the proposals contained in the budget for the upcoming financial year, it would hit common people hard.

Finance Minister KN Balagopal presented the budget for 2023-24 in the assembly on Friday proposing to increase taxes on petrol, diesel and motor vehicles.

Ater the adoption of the nationwide uniform Goods and Services Taxes (GST), the states are let with these few avenues to mobilise additional revenue.

“The higher fuel taxes will increase prices of all commodities. It’s a heavy blow on common people,” leader of the opposition in the state assembly VD Sateeshan said.

“Similarly, you’re already levying a 247 per cent tax on liquor. When it goes up, it creates a lot of social issues. People will increasingly turn to drugs creating more social unrest.” He said the lacklustre budget document provided no roadmap for the southern state’s development and the tax administration required an urgent overhaul.

“Tax collection has hit time an all-time low. Your past claims proved hollow You announced a

Rs50 billion package for Idukki but not a rupee was spent,” he said.

Announcing a statewide agitation, Satheesan said the budget would “break the spine of the common people.” “At no cost will we allow this indiscriminate hiking of taxes and cess on petrol and diesel,” he said.

“We are launching indefinite state-wide protests and they’ll continue till the government rolls back the hikes.” Inaugurating a protest demonstration in Kollam, he said the burden on the man on the street due to these hiked taxes will come to Rs40 billion.

“This hike comes at a time when the Let government and their leaders are always up in arms demanding the reduction of fuel prices,” he said.

Balagopal defended the hike in taxes and said the only way to raise additional resources is to increase liquor prices and through the cess on petrol and diesel.

The state government has a monopoly in the distribution and sale of liquor through its outlets.

The federal government had increased the borrowing limits of the states to five per cent of the GDP from three per cent during the pandemic.

“The Centre has reduced the borrowing of our government by around Rs27 billion and the only way to go forward is to hike taxes,” he said.