With the Centre announcing cuts in the Central excise duties on petrol and diesel, the sales tax on the fuel collected in the State will also go down correspondingly.
The tax on petrol will go down by ₹2.41 and that on diesel, by ₹1.36, according to the State government.
Finance Minister K.N. Balagopal claimed that the decision to reduce the sales tax was a conscious one by the State government. According to him, the State had decided not to make up for the loss in sales tax revenue.
He welcomed the Central decision to ''partially reduce'' the duties on petrol and diesel. The State government welcomes it,'' Mr. Balagopal said.
Meanwhile, Bharatiya Janata Party (BJP) State president K. Surendran demanded that the State government reduce its taxes on petrol and diesel by ₹10 each. The BJP would launch agitations unless the State government was prepared to withdraw from its ''anti-people'' policies.
Mr. Surendran said that other States were collecting a lesser amount than Kerala as fuel tax. The State government should slash the fuel tax and reduce the bus and taxi fares, Mr. Surendran said.
