Kerala Thursday refused to lower its taxes on petroleum products after the Centre reduced its share on petrol and diesel by ₹2.50 per litre and asked states to match the cuts, saying it would only do so when the central levy was brought back to 2014 levels.
Kerala finance minister TM Thomas Issac said the Centre has reduced its tax on petrol by ₹1.50 per litre after hiking it by ₹9.
“Ever since Modi government assumed power it raised excise duty on diesel by ₹14 and petrol by ₹9 per litre. What it did now is only an eyewash. If it is serious, it should reduce the tax to what it was when it assumed office. Then we will step in,” he said in Thiruvananthapuram while reacting to union finance minister Arun Jaitley’s suggestion to states to reduce value added tax share.
Thirteen of the 21 Bharatiya Janata Party ruled states as well as Jammu and Kashmir, which is presently under governor’s rule, have heeded Jaitley’s call, while none of the opposition-ruled states have followed suit.