Kerala has not hiked the tax on petrol and diesel even once in the past six years, Finance Minister K.N. Balagopal said on Wednesday, reacting sharply to Prime Minister Narendra Modi's criticism of States, including Kerala, for not reducing the tax on petrol and diesel.
Mr. Balagopal indicated that Mr. Modi's stance on the matter was misleading and detrimental to the State's interests. Instead of asking resource-starved States to slash their limited income source, the Centre should put a stop to collecting cess and surcharge on petrol and diesel, he said.
‘’Kerala has not hiked sales tax on petrol and diesel in the past six years. It is one of the few States which has not done so. So what is it that we should reduce? After the Left Democratic Front came to power, tax was reduced on one occasion. After that it was never increased and everyone knows that in the current scenario, we cannot even consider a hike. But people in responsible positions in the Centre are making statements which could mislead the public,” Mr. Balagopal said.
