The Kerala government on Saturday announced a cut in tax on the prices of petrol and diesel by Rs 2.41 and Rs 1.36 per litre respectively, following a reduction of fuel prices by the Centre. Similarly, the Congress-led Rajasthan government has also decided to cut down taxes on petrol by Rs. 2 48 per litre and Rs. 1.16 per liter on diesel.
Announcing this on Twitter, Gehlot added that the tax reduction will cost the state government a revenue loss of Rs. 1200 crore annually.
Announcing the cut on state tax, Kerala Finance Minister K N Balagopal said the Union government has partially reduced the huge tax imposed by it. He, however, welcomed the Centre's decision. "The Union government has partially reduced the huge tax on petrol and diesel. Kerala government welcomes this decision," Balagopal said in a statement. "State government will reduce state tax on the price of petrol and diesel by Rs 2.41 and Rs 1.36 per litre respectively," he said.
The Union government on Saturday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre to give relief to consumers battering by high fuel prices that have also pushed inflation to a multi-year high.
The excise duty cut will translate into a reduction of Rs 9.5 a litre on petrol and Rs 7 a litre in diesel after taking into account its impact on other levies.
(With PTI inputs)