The tax revenue from the sale of petrol and diesel in the State increased by ₹445.25 crore in 2023-24 compared to the previous fiscal, according to the Finance Department.
In the 2023-24 fiscal, the revenue from tax, additional tax, and social security cess stood at ₹9,101.07 crore till January 2024, the department said, citing provisional figures for the two periods. During the same period in 2022-23, the tax revenue from fuel sales was ₹8,655.82 crore, show State Assembly documents.
According to the Finance Department, tax revenue from the sale of petrol rose by 9.13% and that of diesel, 0.67% till January over 2022-23.
The tax revenue details gain relevance against the backdrop of the debate whether the decision to collect social security cess on petrol and diesel, announced in the 2023-24 State Budget, had caused a dip in fuel sales in Kerala.
In the 2023-24 budget, Finance Minister K. N. Balagopal had announced a levy of ₹2 on every litre of petrol and diesel sold in the State to feed a Social Security Seed Fund. It was expected to raise ₹750 crore in additional revenue annually. The government had also expected another ₹400 crore from a similar cess on Indian-made foreign liquor.
But the decision led to allegations that it adversely impacted diesel sales in the State. Mr. Balagopal’s statement in the Assembly ahead of the 2024-25 budget presentation that the cesses were insufficient to meet even one month’s social security payments prompted the Opposition UDF to demand their roll-back in the budget. But they were left untouched.
