This state cuts tax on petrol, diesel after Centre reduces excise duty on fuel

The Kerala government on Saturday announced a cut in tax on the prices of petrol and diesel by ₹2.41 and ₹1.36 per litre respectively, becoming the first state to take such a decision following the reduction of central excise duty on fuel by the Centre earlier in the day. 

Kerala finance minister KN Balagopal said the Centre has partially reduced the huge tax imposed by it but welcomed the decision, reported news agency PTI. 

“The Union government has partially reduced the huge tax on petrol and diesel. The Kerala government welcomes the decision,” Balagopal said in a statement. 

“…state government will reduce state tax on the price of petrol and diesel by ₹2.41 and ₹1.36 per litre respectively,” he said. 

The Kerala government’s move comes even as BJP president JP Nadda demanded that opposition-ruled states also slash taxes for greater public benefit.

In a statement, Nadda said BJP-ruled states had cut Value Added Tax (VAT) on petrol and diesel when the Centre reduced excise duty on petrol by ₹10 and diesel by ₹5 in November last year but opposition parties had not done so in their states, something Modi had highlighted in his meeting with chief ministers last month.

Also Read | BJP leaders ‘thank’ PM Modi for excise duty cut on fuel; Oppn says ‘jhumla’

The Modi government’s decision on Saturday shows how sensitive it is to the interests of the common man, Nadda added.

The BJP president also lauded the government’s decision to give a ₹200 subsidy on every gas cylinder to beneficiaries of the Ujjwala scheme.

The government cut excise duty on petrol by a steep ₹8 per litre and that on diesel by ₹6 per litre to give relief to consumers from high fuel prices that have also pushed inflation.

The excise duty cut will translate into a reduction of ₹9.5 a litre on petrol and ₹7 a litre in diesel after taking into account its impact on other levies.

(With inputs from PTI)