IN a surprising move, the Kerala cabinet has decided to impose a huge hike in taxes, service charge and new rate of water charge. This hike is imposed in the pretext of overcoming the severe economic crisis the state faces. The new burden of Rs 3,000 crore will be put on the people through these new taxes. The burden may go up to Rs 4,000 crore as the additional taxes come. New taxes are in addition to Rs 5,614 crore tax imposed by the UDF government in the past three years. The government resorted to this hike to overcome the loss of revenue after its decision to close down all bars, except those in Five Star hotels. Chief Minister Oommen Chandy said that more proposals have come up and decision on them will be taken afterwards. Two committees will be set up to propose new taxes and to review the fair value of the land. Land tax in panchayat, municipality and corporation will be raised. Plantation tax has also been raised. The highest hike is for water. The raise of water tax ranges from 50 per cent to 60 per cent. Fees for all government services including fee for birth, death, marriage certificates and certificates from hospitals have also been raised. Rs 369 crore is expected to be collected through these measures. Twenty per cent tax hike has been announced for Indian made foreign liquor (IMFL), and beer and wine sold through Kerala state beverages corporation outlets and 5 per cent cess also imposed on them. The tax for IMFL will be raised to 135 per cent from 115 per cent. Tax on cigarettes and tobacco products has also been raised to 30 per cent. All these announcements were made without consulting in the ruling United Democratic Front and not even in the legislative assembly. The ordinance regarding the tax hike will be promulgated later, Chief Minister Oommen Chandy has said. Slamming the UDF government for the steep hike in taxes, CPI(M) state secretary Pinarayi Vijayan said the party would begin massive agitation and urged the people to desist from paying the increased tax and the new water charges. Accusing the Oommen Chandy Government of "resorting to undemocratic" means to raise additional resources, he said the present crisis was the result of the gross mismanagement of public finances by the UDF dispensation. Vijayan also hit out at the government for taking the "ordinance route" to raise a huge amount without presenting and debating the proposals in the assembly. “The people are being penalised for the government's extravaganza and mismanagement. It is quite undemocratic that this has been done through an ordinance by side-stepping the legislature," he said. He said the measures announced by the Chief Minister would cast an additional burden of over Rs 4,000 crore on the people. Added to this, the proposals under consideration, this would cross Rs 7,000 crore. This was for the first time that such a huge tax burden being cast on the public outside the annual budget, he said. He said the details of the agitation would be worked out collectively by the LDF. People would be appealed to desist from paying the increase in water charges and fee for various government services, he said.