People not liable to pay increased taxes, says Achuthanandan

Thiruvananthapuram: Opposition leader V S Achuthanandan on Thursday said that the people in the State do not need to pay the UDF government the recently increased taxes as the decision was yet to be approved by the Assembly.

Talking to reporters here, Achuthanandan said that an Assembly session should immediately be convened to discuss the tax hike.

“The government should withdraw the decision to increase taxes as it forces a burden of around Rs 2010 crore on the people. This is a challenge to the people in the State,” said the Marxist veteran.

He added that the Opposition parties would protest against the decision of the government.

Faced with a grim fund crunch arising from its policy of sharply cutting down on the liquor business, the government on Wednesday steeply increased taxes on liquor, cigarettes, water charges and fees for various services to mop up over Rs. 1,500 crore.

In a major post-budget exercise of Additional Resources Mobilisation of recent times, the Cabinet hiked tax on Indian Made Foreign Liquor by 20% and imposed a five per cent cess for rehabilitation of workers who lost their jobs due to closure of bars. The measure is anticipated to net Rs. 1,130 crore to the exchequer.