Kochi: Justifying the decision to raise taxes on liquor, cigarettes and tobacco, Kerala Chief Minister Oommen Chandy Thursday said this was to ensure a reduction in their consumption.
In other states, 50 per cent taxes have been imposed on liquor and other products. We have only increased the taxes by 30 per cent, Chandy told reporters on the sidelines of a function here.
"Eighty five per cent of new taxes is on cigarettes, liquor etc and why should the opposition Left Front object," Chandy asked reacting to CPI-M led LDF's threat to launch agitation and urge people to desist from paying the hiked taxes.
The government's aim was to decrease the availability of liquor. First the liquor bars were closed and each year beverages corporation outlets will also be reduced. The raising of taxes was the second step in this direction, he said.
CPI-M state Secretary Pinarayi Vijayan had accused the government of "resorting to undemocratic" means to raise additional resources to tide over the revenue crunch due to closure of liquor bars in the state.
The state government had Wednesday steeply raised taxes on liquor, cigarettes, water charges and fees for various services to mop up over Rs 1,500 crore.
On the Kuttanad package Chandy said the package had not lapsed and Union Agriculture Minister will be visiting Kuttanad in November to meet the farmers.
Kuttanad in Alapuzha was facing severe agrarian distress for last 5 decades and following a request of the state government, the Central had entrusted Dr M S Swaminathan Research Foundation, Chennai, to conduct a scientific study and suggest suitable measures. The Foundation had recommended a package with a total cost of Rs 1840 crore which was accepted by the Centre.
"The package had not lapsed. We need to extend the package. We want to fully utilise the Rs 1840 crore allocated to the package which was not sufficient", he said.
A meeting of representatives of people will be called, he said, adding, everything related to the package was transparent.
The government would fully cooperate with the judicial commission appointed by the government to probe the Solar panel scam, he said. The opposition, which had raised various allegations, had not cooperated so far, he said.