The CPI(M)-led Kerala government on Wednesday rejected Prime Minister Narendra Modi’s appeal to the six opposition-ruled states to cut down tax on fuel.
Finance minister T N Balagopal said the state has no plans slash sales tax on petrol and diesel. He said the state could not afford to reduce tax at this juncture as it never increased value added tax.
“The PM’s statement creates enough misunderstanding and gives an impression that states are behind recurring price hike of petroleum products. States are not getting their due and even cess and surcharge, the Centre pockets them. GST backlog is also quite high,” he said, adding, Kerala has no plan to cut value added tax on petroleum products.
“GST has already deprived states of taxing rights. Petrol and alcohol are two remaining items where the states have some power. The Centre should explain how states can go ahead like this. The PM’s statement was not in good spirit of federal polity of the country,” he said. He also criticised the PM for raising the issue during a meet called to discuss Covid-19 situation in the country.