'Withdraw VAT,tax on fuel'

“We welcome government’s decision of collecting flood tax from the rich. However, increasing VAT and introducing additional tax on fuel will increase the burden of poor, as the prices of all commodities will rise simultaneously,” he said. The flood-hit families too will have to suffer due to price rise, if the VAT has been increased further, he added.


He suggested that the salary and allowances of MLAs and Ministers should be deducted, instead of collecting more tax from common man. “The allowances of MLAs in the state, which was Rs 22,000, have been increased to Rs 44,000 in August. Similarly, pension benefits of former ministers also have been increased considerably. Government should cancel all these hikes till June 2010 and utilise the same amount towards flood relief work,” he added. Lokesh suggested that all increments and promotions announced for government employees should be suspended till 2011.

Levy additional tax

 “Additional tax should be levied from those who earn more than Rs 50,000 per month in private institutions. All contributions announced towards various mutts and temples in the budget should be held up till 2011,” he said. State government also should withdraw all sops given to corporate companies, Lokesh said suggesting that addition flood tax at 10 per cent should be collected from corporate companies.

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