Kerala govt firm on decision not to reduce fuel tax despite criticism

Despite opposition criticism, the Kerala government on Friday reaffirmed its stand that it could not forego the taxes on fuel due to the grim financial situation and said there was a natural proportionate decrease in the state tax with the Centre’s tax cut due to the peculiarity of the tax structure here.

When many other states had increased fuel tax and introduced cess during the COVID-19 period, Kerala had not done so considering the plight of struggling commoners, state Finance Minister K N Balagopal told a press conference here.

The Centre’s present decision to slash excise duty on petrol and diesel was due to the setbacks suffered by the BJP in the recent bypolls in various states, he alleged.