In a step aimed at providing some relief to the common man from the fuel price hike, the Kerala Government today announced that it would waive the additional sales tax revenue of Rs 108 crore generated on petrol sales.

“The present price hike will earn Kerala additional sales tax revenue of Rs 108 crore, which will be waived. This will result in petrol price coming down by 70 paise in the State,” the Chief Minister, Mr Oommen Chandy, said while speaking to reporters on the sidelines of a function here.

He said he had held discussions with the Finance Minister, Mr K.M. Mani, and UDF leaders before taking the decision.

Mr Chandy said the UDF Government had waived about Rs 400 crore additional revenue generated on account of increasing prices of petrol and diesel after coming to power four months ago.

He said the previous CPI(M)-led Left Democratic Front Government had waived sales tax on petrol just once when prices were increased 16 times. LDF government had earned additional revenue of Rs 600 crore during its tenure, but had not adopted a people-friendly approach, he said.

Mr Chandy also urged the opposition to withdraw their ongoing agitation in protest against the hike, which saw violent protests in the last two days and three Government vehicles being torched.

He also urged the Kerala Motor Vehicle Co-ordination Committee to give up its 12-hour ‘motor strike’ call on September 19.

Mr Chandy had earlier said that in a democracy people have every right to protest, but that none would be allowed to take law into their hands and resort to violence.

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