The UDF Government in Kerala today decided to forgo the state tax to be accrued by way of the recent increase on diesel price. This was announced by Chief Minister Oommen Chandy in the state assembly while replying to an adjournment notice given by opposition LDF on the issue. Diesel price in Kerala would come down by 75 paise due to the decision. He said, the state exchequer would lose 142.2 crore rupees by giving up the tax. Kerala had given up the tax when petrol price was hiked by the Centre last month.

AIR correspondent reports, the hike in diesel, kerosene and cooking gas price created noisy scenes in the assembly. Opposition leader V.S. Achuthanandan and former finance minister Dr.Thomas Issac unleashed severe criticism against the state and central governments. The entire opposition walked out of the house when speaker refused permission for an adjournment motion on the issue.