Kerala - Thiruvananthapuram   

Withdraw 1 per cent tax on rice: Chandy

Thiruvananthapuram: Leader of the Opposition Oommen Chandy on Wednesday asked the government to provide relief to the people by withdrawing the 1 per cent tax levied on rice.

Addressing a press conference here, Mr. Chandy took strong exception to Chief Minister V.S. Achuthanandan’s criticism of the UDF picketing in protest against price rise. It was the Chief Minister and his government that betrayed the people by failing to take effective steps to tackle the unprecedented price rise not only of rice but also of all essential commodities. The government refused to withdraw tax on petrol and diesel when their price was increased. Rice was the staple diet of Keralites and the government’s attitude was condemnable.

“The Chief Minister was prompt in blaming the Centre for the price rise, but does not the State government have responsibility,” he asked.

The UDF government had taken effective measures to tackle the rise in prices and the then LDF Opposition could not launch a single agitation on this issue. The UDF government reduced the tax on diesel and petrol when the Centre increased their prices, leading to a loss of Rs.100 crore in tax revenue.

It also distributed 25 kg of rice at Rs.3 a kg. Mr. Chandy wanted to know what steps the government had taken so far on these lines. He also wanted the Chief Minister to disclose the subsidy amount released to the Kerala State Civil Supplies Corporation for market intervention during the last 18 months. He said the price of raw and boiled rice in Andhra Pradesh was Rs.12.50 and 10.50 respectively. In Karnataka, the Jaya variety of rice cost Rs.14.50 and in Tamil Nadu, the CO variety Rs.15.50.

In Tamil Nadu, there was no tax on rice, while in Andhra Pradesh, millers had to pay the levy on rice. Criticising the Chief Minister for belittling the UDF agitation on price rise, Mr. Chandy maintained that the Opposition coalition would continue to stage peaceful demonstrations to highlight the issues affecting the people.

He accused the Supplyco of raising the prices of commodities to manage its balance sheet rather than effectively utilising subsidy amounts for effective market intervention. When asked whether the withdrawal of the 1 per cent tax would make any dent on the price of rice, Mr. Chandy said the government should send the right message by doing so.

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