THIRUVANANTHAPURAM: Despite growing demand for reducing the state's share of tax on petrol and diesel following the excise duty cut by the Centre, the LDF government has reiterated that it will not reduce its share of tax.
Finance Minister K N Balagopal said the price of petrol and diesel has come down further in Kerala as the state's share of tax has also been proportionately decreased.
"When the Centre reduced its tax by Rs 10 per litre for diesel and Rs five per litre for petrol, the reduction in price in the state was Rs 12.30 per litre for diesel and Rs 6.56 per litre for petrol. This means the additional reduction of Rs 2.30 per litre for diesel and Rs 1.56 for petrol was the state's share," Balagopal told reporters.
The finance minister said it was wrong to claim that the state has not lowered its share of tax. With petrol and diesel prices in the state going down by an additional Rs 1.56 and Rs 2.30 respectively, the state government will forego Rs 500 crore this fiscal and Rs 1000 cr in the next fiscal. He said the reduction on tax rate announced by other states was in fact a rollback of the hike they had affected earlier.
Balagopal flayed the Opposition UDF and BJP's call for agitation demanding to slash the state's share of tax on fuel.
"The KPCC president says BJP has done its part and now it is the turn of the state government. Is issuing a certificate to the BJP the job of the state Congress chief?" Balalgopal asked.
The Finance Minister said the previous Oommen Chandy government had increased the state's share of tax on petrol and diesel 13 times. However, the LDF government has not increased its rate of tax on fuel for the past six years. Balagopal flayed the Centre for collecting more money than the state's share of tax, by imposing a huge surcharge. He reminded that while the Centre collected Rs 27.9 from petrol and Rs 21.8 from diesel per litre as a surcharge, the state was collecting only Rs 22.9 and 21.8 respectively as its share of tax.
The Finance Minister said the Centre was misusing a constitutional provision that empowers it to collect a small amount as a surcharge for its exclusive use during exigencies. However, instead of levying a minor surcharge, the Centre was collecting an exorbitant amount, he said. Balagopal asked the Centre to reduce the surcharge if it was actually concerned about reducing the burden on the common man.
"Collection of huge amount as a surcharge on fuel without sharing a portion of it with the state is an infringement on the rights of the state. It goes against the federal principles and states will soon raise this as a major issue," Balagopal said.