22 May 2022, 09:11 AM IST
The Minister says that the reduction is proportional to the reduction of the Center. There has been no significant reduction in state taxes
Chief Minister Pinarayi Vijayan, Finance Minister KN Balagopal | Photo: Mathrubhumi
Thiruvananthapuram: Though the central government has reduced the excise duty on petrol and diesel, the state government may not reduce the excise duty on its own this time as well. In Kerala, petrol and diesel will be reduced by Rs 2.41 and Rs 1.36, respectively, due to the reduction in central excise duty. The state government has decided that this reduction is enough.
When the Center reduced the excise duty in November 2021, Union Minister Nirmala Sitharaman had yesterday demanded that all states, including those which had not given concessions, should reduce fuel taxes and provide more relief to the common man. States including Kerala did not reduce taxes then. Even then, the state government decided that a proportional reduction was enough.
On Saturday, Finance Minister Nirmala Sitharaman announced a reduction of Rs 8 for petrol and Rs 6 for diesel. In Kerala, petrol and diesel prices have been reduced by Rs 10.41 and Rs 7.36 per liter, respectively, due to a commensurate reduction in the state tax share.
In a post on Facebook, Minister KN Balagopal welcomed the Centre’s reduction in taxes and claimed that the state government had also reduced taxes. . However, the minister said that the reduction was proportional to the reduction of the Center. There has been no significant reduction in state taxes.
The state levies tax on the price including excise duty. When the excise duty is reduced, the share of the state in taxes will decrease accordingly. In the past, when taxes fell on some occasions, the state would raise rates and keep the same revenue. This time it has been omitted. So the state government says it is reducing taxes.
Content Highlights: Fuel price- only proportional concessions in kerala
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