Fuel cess triggers rift, LDF partners demand rollback

‘Inevitable’: Finance Minister K N Balagopal has said the cess was inevitable against the backdrop of Centre’s curbs on borrowing.
Representational image of fuel. (Photo | Express)
Representational image of fuel. (Photo | Express)

THIRUVANANTHAPURAM: A day after imposing the Rs 2 social security cess on fuel, the state government has come under intense pressure from within the ruling front to roll back the budget proposal. This could even force the government to review the decision, and reduce the levy by Rs 1.

The warning of a possible backlash first came from LDF convenor E P Jayarajan. Other allies followed suit, leaving the CPI, that supported the proposal, the odd man out. CPM state secretary M V Govindan tried to play down the issue saying it was a mere proposal.

Kerala Congress (M), NCP and Janata Dal (S) are of the opinion that a hike in the fuel price will make the lives of ordinary people more miserable. Unofficial discussions and deliberations have already started in the ruling front on the matter. Leaders in the CPM are also of the view that with the general election round the corner, public sentiment will be against the government.

Jayarajan said the difference in fuel prices with neighbouring states such as Tamil Nadu, Karnataka and Puducherry will be a setback for the state economy. “The government will consider the issue. Although no government can survive without imposing tax, it should not make people suffer. The government should win over people and persuade them to pay tax as their social responsibility,” he said.

NCP state president P C Chacko told TNIE that the proposed cess is against LDF policy. “Its policy is that nothing that will impose burden on the people should be introduced. The fuel cess is against it,” he said.

Kerala Congress (M) also shared the view that the cess will directly affect the people. “The hike in fuel price will lead to inflation,” party chairman Jose K Mani told TNIE. “It will also affect the goods and service sector. KC(M) hopes that the government will modify the proposal,” he said.

JD(S) state president Mathew T Thomas confirmed that deliberations have started between leaders.
Sources said the chief minister had kept the CPM leadership in the loop on the proposal. The CPI, too, was taken into confidence.

The government is of the view that with central assistance shrinking, GST compensation coming to an end and the borrowing capacity of the state curtailed, there are not much options left before it. This prompted the government to make the proposal, which will be discussed in assembly in detail. “Let the discussion take place,” senior CPM leader S Ramachandran Pillai told TNIE.

“It’s a mere proposal. We knew that there would be protests. But the government has to function. Otherwise, disbursement of salary and pension will be hindered,” he said. Govindan echoed the view. “Let the assembly discuss the matter. The government will decide in accordance with the opinions arising there,” he said.

CPI leader Kanam Rajendran’s support for the proposal has not gone down well with a section of his party. However, the leadership feels the party should not be a tool of the Opposition. “The party will say what it has to say at the proper place. Everything can’t be said publicly,” he said.

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