State counters Centre’s 1 ps stinginess with G1 largesse
THIRUVANANTHAPURAM: Heeding public’s call and “sending out a message” to the Centre, the state government decided to slash sales tax on fuel and bring down its fuel by `1 from June 1.
The move will result in the state losing a revenue of `509 crore annually. The rate of tax cut has not been finalised while the Finance Department has been entrusted with the task of modifying the tax structure on fuel so as to bring down `1 in the final price.
“The sales tax on petrol reduced by 1.69 pc and diesel by 1.75 pc in Kerala. The retail prices to decline by `1,” tweeted Finance Minister Thomas Isaac.Chief Minister Pinarayi Vijayan later urged the Centre to take a cue from the state’s move and bring down the fuel prices in the country.
“Despite financial crisis, the state took this step so as to regulate the price. We’re sending out a message to the Centre. The Union Government should take a call on reducing fuel price,” said Pinarayi. Responding to a question, he said the cut of `1 would continue irrespective of the fluctuations in price.
The CPM and the Left government had openly come out against the Centre for its failure to intervene in the fuel price hike. Isaac went one step further and challenged Prime Minister Narendra Modi. “Will PM Modi be willing to roll back his tax hike,” tweeted Isaac.
Faux pas as petrol, diesel prices cut by 1 paise, not 60 p
Oil firms on Wednesday cut petrol and diesel prices by 1 paise. This is the first reduction after 16 days of relentless price hikes. There was some confusion as IOC first announced a reduction of 60 paise but later retracted it citing “clerical error”.
Rs 509 cr will be annually foregone by the state government following the move
