State forgoes additional ST of Rs 1.63

THIRUVANANTHAPURAM: The state govt on Thursday decided to formally appeal to the Centre to withdraw the petrol price hike, while also resolving to forgo the additional sales tax accrual of the state in toto. The additional sales tax of Rs 1.63 per litre of petrol would not be collected, Chief Minister Oommen Chandy said here.The state exchequer stands to lose Rs 218 crore through this decision, Chandy told reporters.He has faxed a letter expressing the deep concern of the state to Prime Minister Manmohan Singh, Finance Minister Pranab Mukerjee and Union Petroleum Minister Jaipal Reddy.“The decision of the state to forgo the additional sales tax will prove the sincerity of the government regarding its protest against the price hike. People will approve of it,” he said.“The Cabinet decision will be conveyed to the Centre through a letter,” he said.The Chief Minister said that though the government has decided  to forgo revenue of a whopping Rs 218 crore, the financial burden of the state would increase with the hike.