Demand that Kerala should reduce taxes on fuel is against interests of state and people: Minister Balagopal

THIRUVANANTHAPURAM: Finance Minister KN Balagopal has said the demand that Kerala should reduce taxes on petrol and diesel is against the interests of the state and the people. The minister explained this through his official Facebook page.

The Minister explained that the tax reduction in Kerala should not be underestimated as a mere proportional reduction and instead it should be said that the reduction in the tax rate in Kerala was due to the uniqueness of the tax structure of the state. According to KN Balagopal, the reason for the increase in fuel prices in the country is that the central government has introduced new taxes and increased them several times whenever international prices fell. He said the government has spent over Rs 20,000 crore through Covid package and is spending thousands of crores of rupees to protect public sector undertakings like KSRTC. Kerala spends more than any other state on public education and ration. In addition to this, the revenue due to Kerala from the central share, GST compensation and revenue deficit grant will be reduced by more than Rs 19,000 crore this financial year.