The central government has brought down the price of fuel by Rs 2.50 and urged the state governments to take a similar action to offer further relief to citizens. Other states like Gujarat and Maharashtra have obliged but Communist Party led Kerala government stood adamant on it’s stand to not reduce the tax. Centre reduced the tax by 1.50 Rs while the oil companies would absorb 1 Re.
Kerala Finance minister Thomas Isacc said that only if the tax which was increased by the centre is completely withdrawn by the centre, the state will think about reducing the tax.
“Only after increasing about 9 Rs has the state now reduced the tax by 1.50 rs. Let the centre take away the tax it imposed completely and then Kerala will think about taking away the taxes”, said Thomas Isacc.
Centre Finance minister Arun Jaitley said that if the states too take the initiative to cut down the VAT on fuel by 2.50 Rs, it will come as a huge relief to the citizens.
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