ThiruvananThapuram: Standing Finance Minister Kerala KN Balagopal on Thursday that the state cannot reduce tax on fuel in the same way as the center because it will cause a large burden on the government shaken under a large financial liability criticized by the Congress LED-UDF and BJP.
The State Minister of Finance, while talking to reporters, said that the Center’s decision was only “saving advance size” and has led to an additional decline of around Rs 1.5 and Rs 2.5 in gasoline and diesel fuel.
This has caused gasoline and diesel in the kerala to reduce around Rs 6 and Rs 12, respectively, he said.
However, the state cannot reduce taxes in the same line as the center since the government of Kerala and its various bodies, such as KSRTC, are under a large burden due to the increase in fuel prices, Balagopal said.
The minister further said that the state government has also launched several financial assistance packages for their hit with Covid-19 and disasters recently and increased Dearness benefits by 6 percent, all of which might be affected if the tax on fuel prices is cut.
He said he would come back with the actual number of implications of each tax cut by the state.
Responding to the Ministerial Statement, Kerala State President BJP K Surendran said the government led by Vijayan Pinarayi was “heartless, lacking in sincerity and anti-people” because they refused to cut fuel taxes.
Opposition leaders in the state of the Assembly V D Sathean also criticized the government left and said that excise deductions were “marginalized” and that the state and the central government were conducting “tax terrorism.” Surendran, speaking at a press conference, said that in all countries managed by the state there has been a proportional decline in taxes, but the government of the Kerala “arrogantly refuses to reduce even a cent” and this stand is “heartless, lack of sincerity and anti-people”.
He alleged that the hearts of the state finance ministers and the minister’s chairman had turned into stone because they were not affected by the suffering of ordinary people.
Sathean, talking to the media, said that since the excise reduction by the center has resulted in a reduction here around Rs 1.5 in gasoline and rs 2.5 diesel prices, therefore, that means that when excise increases, there is appropriate increase in state revenue.
He said that Congress and UDF only wanted that from additional income that the state was obtained because of the initial increase in excise, the portion was used to provide subsidies for the transportation of the KSRTC corporate state, cars and taxi drivers and fishermen.
Sathean said their request was simple and had no intention of drying the state of the state government.
Kerala Pradesh Congress Committee (KPCC) of the President and MP K Sudhakan said that if there was no one in accordance with tax deductions by the state, protests would not stop and now will be directed towards the government left.
He said that the increase in fuel prices has led to an increase in important commodity costs and days to day harmful needs affecting the general public, especially those from the weak economic part of society.
Balagopal has on Wednesday saying that the central decision for Cut Excise Tasks on gasoline and diesel with “small margins” from Rs 5 and Rs 10 each are “temporary actions to save face” and “throw away dust in the eyes of the people.” Minister, In a statement, saying that for every real difference must be made, the center must cut special taxes and CESS from Rs 30 per liter is collected by diesel and gasoline.
He also said countries that did not accept part of the income collected through additional taxes were being imposed regardless of fluctuations in international oil prices.