VS rules out sales tax cut on petrol, diesel

Kerala chief minister V S Achuthanandan has categorically ruled out the possibility of reducing sales tax on petroleum products in order to cushion the recent 'oil price hike blow'.

Addressing a meet-the-press here today, he said that conceding to the demand of the opposition for sales tax reduction would be tantamount to supporting the Centre's decision to increase the prices of petrol and diesel.

"By doing so (not reducing sales tax) we are strongly protesting against the 'anti-people' policies of the Union government." The Congress high command has asked state governments to reduce the sales tax and some have readily obliged.

"We strongly demand that the Central government rollback oil prices. Left parties will not accept this under any circumstances," Achuthanandan said.

On the issue of withdrawal of support to the UPA government, he said that Left parties would take an appropriate decision at the right time. The new LDF government's priority would be to improve the financial condition of farmers, 'which deteriorated during the UDF rule'.

During the last two years,as many as1543 farmers have committed suicide due to mounting debts. But the UDF government turned a blind eye to the tragedy, alleged Achuthanandan.

He said that unauthorised money lenders, known as 'Blade Mafia' had caused the suicide of many farmers in Wynad district. His government already declared a moratorium on the outstanding loans of farmers for a period of one year.

He promised to take stringent action against `Blade Mafia' and order an enquiry to find out why farmers were being caught in a debt trap.

It may be recalled that a state-level banker's committee meeting convened by the chief minister decided to write off agriculture loans up to Rs 1 lakh taken by each deceased farmer.

The chief minister said that a few major IT companies had approached the government with proposals to start IT infrastructure in the state.

The government would study the proposals and an appropriate decision would be taken keeping in view employment opportunities.

Replying to a query on the discussions between the West Bengal government and Dubai Internet City (DIC), the promoters of the proposed Smart City in Kerala, he said, "Let them go anywhere, we are not concerned. Smart City is just one among many IT infrastructure proposals."