INDIA
This will cause a revenue loss of Rs 509 crore annually
As the Modi government tried to duck criticism on “one paisa” cut by blaming it on clerical error, the decision to slash fuel prices by full one rupee from June 1 by the CPM led LDF government in Kerala made the going more difficult for it.
“Our state is not doing financially well. But our government has taken the decision to cut sales tax on fuel to effect a Re 1 reduction in petrol and diesel prices from June 1. This will cause a revenue loss of Rs 509 crore annually.”
“This should be seen as our message to the Centre. Fuel prices cannot go up like this. They must slash prices so as to provide relief for the common man,”said Kerala chief minister Pinarayai Vijayan.
Left with little choice but to welcome the decision, union petroleum minister Dharmendra Pradhan asked the other states to take a cue from it.
“I welcome it. One must also note that Kerala is one of the highest tax-collecting states and when we appealed (for fuel price cut), their Finance Minister gave a negative statement, but now they took responsibility. I thank them for it,” Pradhan said.
Pradhan, however, pointed out that the state’s tax collection was one of the highest. Pradhan alleged it was the Central government that had appealed to the Kerala government to reduce oil prices but its offer was spurned earlier by state Finance Minister Thoman Issac.
He urged the opposition against politicising the issue and said other states, irrespective of being governed by BJP or not, should try and ease the burden from the consumers.
Kerala did well by reducing the price. All states, whether governed by BJP or opposition, should try to reduce fuel prices but each state has different priorities and responsibilities, said Union petroleum minister Dharmendra Pradhan.
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