KOCHI: Union Minister V Muraleedharan said Kerala should reduce taxes to bring down the price of petrol and diesel. Finance Minister Dr Thomas Isaac said there was no question of reducing tax. The centre had not stated that, Muraleedharan said.

A major portion of the tax levied by the centre is transferred to state governments as part of welfare schemes. Pinarayi government is giving rice for free and that is provided by the centre. All that comes from it. Muraleedharan said that if they don’t want that, the state government need to reduce taxes.

Fuel prices are not determined only on the basis of international prices. The price of petrol and diesel includes the price of crude oil, transportation cost, processing expenses, agreements and many agreements between India and other countries, as well as taxes. He pointed out that this tax is more than half of the total price.

The tax is above fifty per cent and that is the same for the state and the center. If they are that much interested, the state can reduce taxes. The center has reduced earlier. When media asked him whether there is a possibility of reducing further, he said we will decide when the need arises.