Thiruvananthapuram: Citizens have not passed on the full benefit of reduction and consequent reduction in excise duty on petrol by the Centre. KeralaThe state government on Monday claimed that the fuel has been taxed due to increase in its base price by oil companies. state finance minister KN Balagopal In a statement, it claimed that with a reduction of Rs 8 in excise duty on petrol and Rs 2.41 in tax on fuel, the total reduction should have been Rs 10.41, while in reality it was only Rs 9.40.
However, there is no such issue in the case of diesel, where the full benefit of reduction in excise duty at pumps and reduction in state tax is there.
According to the minister, the reason for this not happening in the case of petrol was the increase of 79 paise in the base price of the fuel.
Sources in the state finance department said that the oil companies have increased the base price of petrol with the consent of the Centre.
Balagopal said in his statement that if the Center allows such an increase in petrol prices, then the benefit of reduction in excise duty and state taxes on the fuel will end within a month.
The Congress-led UDF had disputed this on Sunday. LDF The government claims to cut taxes on petrol and diesel after the Center cut excise duty on the two fuels, saying it was a result of the central government’s decision and not a deliberate cut by the state.
Congress The leaders argued that it is unfortunate that the state is claiming that it has cut tax on petrol and diesel, when in reality the reduction was a proportionate reduction due to reduction in excise duty by the Centre.
This contention was denied by Balagopal who claimed that the reduction was a conscious decision and not a proportionate reduction.
He had also said that the state has decided that when there is a reduction in the price of petrol and diesel, it will reduce the taxes on them.
However, all agreed on one thing that the Center needed to cut excise duty further.
The central government on Saturday cut excise duty on petrol by Rs 8 per liter and diesel by Rs 6 per liter, providing relief to consumers from higher fuel prices, which also pushed inflation to a multi-year high.
However, there is no such issue in the case of diesel, where the full benefit of reduction in excise duty at pumps and reduction in state tax is there.
According to the minister, the reason for this not happening in the case of petrol was the increase of 79 paise in the base price of the fuel.
Sources in the state finance department said that the oil companies have increased the base price of petrol with the consent of the Centre.
Balagopal said in his statement that if the Center allows such an increase in petrol prices, then the benefit of reduction in excise duty and state taxes on the fuel will end within a month.
The Congress-led UDF had disputed this on Sunday. LDF The government claims to cut taxes on petrol and diesel after the Center cut excise duty on the two fuels, saying it was a result of the central government’s decision and not a deliberate cut by the state.
Congress The leaders argued that it is unfortunate that the state is claiming that it has cut tax on petrol and diesel, when in reality the reduction was a proportionate reduction due to reduction in excise duty by the Centre.
This contention was denied by Balagopal who claimed that the reduction was a conscious decision and not a proportionate reduction.
He had also said that the state has decided that when there is a reduction in the price of petrol and diesel, it will reduce the taxes on them.
However, all agreed on one thing that the Center needed to cut excise duty further.
The central government on Saturday cut excise duty on petrol by Rs 8 per liter and diesel by Rs 6 per liter, providing relief to consumers from higher fuel prices, which also pushed inflation to a multi-year high.