Price hike in fuel, water puts CPM government in Kerala on defensive

Protest is mounting against the CPM-led Left Democratic Front government in Kerala over hike in water tariff, cess on petrol and diesel, tax on new vehicles, building tax and even price of liquor.

Apart from the strong demonstrations by the opposition Congress-led United Democratic Front as well as the BJP-RSS, the left-front government is also being criticised in social media.

While the government is trying to justify the tax and tariff hikes citing cut in allocations by the centre, it is being widely blamed for not initiating any austerity measures or launching any drive to recover huge due in various taxes, which is estimated to be around Rs.20,000 crore.

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The water tariff in the state is estimated to go up by at least three times as per a new slab structure introduced. The hike was introduced as a sudden measure from February 4 even though it was stated earlier that hike would come to effect from March only.

The government is being widely criticised for not initiating stringent measures to recover water tariff arrears which come to around Rs. 1500 crore. According to the Congress, the total arrears on various taxes and tariffs was around Rs. 20,000 crore.

The state budget proposes social security cess of Rs 2 per litre of petrol and diesel and up to two percent increase in tax on new vehicles. An enhanced tax structure for buildings and cess of Rs. 20 to Rs 40 per bottle of Indian made foreign liquor were the other budget proposals that will cause additional financial burden on the people directly.

Lack of any austerity measures by the government, frequent purchase of luxury vehicles for who's who in the government and recent decision to pay enhanced remunerations with retrospective effect to CPM youth leader and Kerala Youth Commission chairperson Chintha Jerome are all fueling the public resentment against the tax and tariff hikes.

Causing much embarrassment to the CPM leaders, screenshots and video footage of earlier critical remarks of party leaders like Chief Minister Pinarayi Vijayan against the increase in fuel prices by the centre are now doing the rounds on the social media.

Many senior left-front leaders had also expressed displeasure over the state budget proposal to impose Rs. 2 per litre cess on petrol and diesel as it would lead to rise in price of commodities. Moreover, demands for increasing bus-taxi-autorickshaw fares will also emerge if fuel prices are increased.