Kerala has no plans to cut sales tax levied on fuel in line with the Union government’s decision to reduce central excise duty, said state finance minister K N Balagopal even as the opposition accused him of misleading the people.
Soon after the Centre’s announcement, the minister issued a statement saying the state will also reduce tax on petrol by ₹2.41 and diesel by ₹1.36 but the opposition said he was misleading people and the present reduction was only a reflection of tax adjustment.
Kerala opposition leader V D Satheesan and former CM Oommen Chandy asked the minister to reduce sales tax immediately to give some relief to people but the latter rejected the idea.
“In the last six years we never increased tax on fuel. The state can’t afford to reduce tax at this juncture,” the minister said adding Kerala’s financial position was not good and he blamed the Centre’s tax structure for the situation.
He said after implementation of GST the state was left with two major tax sources, liquor and fuel. Currently the state levies 30.08 per cent on petrol and 22.76 per cent sales tax on diesel. Petrol prices dropped by ₹9 and diesel ₹7 in the state capital after the price cut.
“The minister is diverting attention by reeling out fudged data. He is an expert at blaming the Centre. But people will soon realize his follies,” said BJP state president K Surdendran.
He said the party will launch a protest if the state government refused to cut taxes on fuel. Both the Congress and BJP are making the prices of fuel a poll issue in Thrikkakara which is going to polls on May 31.
