Kerala cannot reduce VAT on fuel: Finance Minister Balagopal
Thiruvananthapuram: A proportionate decrease in the state tax has already taken place with the Union Government reducing the excise duty on fuel, Kerala Finance Minister K N Balagopal said here on Friday.
The UDF government has increased the tax 13 times. However, LDF did not increase it during the last six years. Instead, we decreased the tax once, Balagopal claimed. The Modi government increased the excise duty 15 fold when crude oil price decreased. It is their duty to bring it down, he said.
There was an account called oil pool account in India. The oil marketing companies get full LPG subsidy but a fraction of it will be set aside for compensation for subsidised sales or under-recoveries. The rest will go into the pool account. Balagopal criticised the Manmohan Singh government to let companies decide on the prices as one of the reasons for the price increase.
On Thursday, the CPM had opined that the state need not decrease VAT on fuel. Several states in India followed the footsteps of the Union Government to decrease the tax.