THIRUVANANTHAPURAM: Opposition UDF boycotted Assembly proceedings on the last day of the third session on Thursday to protest the state government's decision not to reduce its share of tax on petrol and diesel after the Centre slashed excise duty on fuel.
UDF MLAs arrived and left the Assembly on bicycles as a mark of protest against the rising fuel prices. K Babu of the Congress, who gave notice for an adjournment motion to discuss the issue, said the state government's 'adamant stance' not to reduce tax was a challenge to the people of the state. He said the policies of both the Central and the state governments have led to the coinage of the term 'tax terrorism'.
Leader of the Opposition VD Satheesan claimed the LDF government has earned Rs 5,000 crore as additional revenue from fuel and asked if it was willing to pass on a small share of it to the common man in the form of fuel subsidies. He added that the UDF government had earned only Rs 491 crore as additional revenue from fuel sales during its five-year tenure.
"The LDF's argument that doing away with the oil pool account and Administered Price Mechanism by successive Congress-led governments was responsible for the current crisis. This is a wrong argument which will only help the Modi government," Satheesan said.
Finance Minister K N Balagopal said that when the Centre reduced Rs 10 and Rs 5 on diesel and petrol respectively, the price came down by Rs 12.30 and Rs 6.56 per liter for diesel and petrol respectively in the state.
This additional reduction of Rs 2.30 and Rs 1.56 per liter of diesel and petrol was the state's contribution, he said.
Balagopal said the UDF raised the tax on fuel by 95% during its five-year rule whereas fuel tax was raised only by 15% by the LDF government between 2016 and 2021.
"Are you trying to victimise a government that hasn’t raised the tax on fuel when the state was going through troubled times, especially during the pandemic?," Balagopal asked.
The Finance Minister said the Centre first raised surcharge to as high as Rs 30 per liter of fuel and then cut excise duties by Rs 10 and Rs 5 per liter of diesel and petrol. He advised Congress not to fall into the trap of the BJP which has launched agitations demanding non-BJP ruled state governments to follow suit by citing the Centre's excise duty cut.