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With fuel prices at an all-time high, the Kerala government has decided that it will reduce the prices of petrol and diesel by Re 1 in the state from Friday, June 1. With this, Kerala becomes the first state to announce a cut in fuel prices.
Chief Minister Pinarayi Vijayan, while making the announcement today, said he had a message for the BJP-ruled government at the centre.
"This will amount to loss of Rs 509 crore for the state government. This is our message to the central government. At a time when the nation has been demanding a reduction in prices, the central government hasn't done anything", Pinarayi Vijayan said.
Kerala as a state was the third highest in levying taxes on fuel but has now decided to lower the taxes.
"We used to levy state tax on motor spirits at the rate of 31.8 per cent on taxable value per kilo litre. For petrol, we will reduce 1.69 per cent from the taxable value to fix the rate at 30.11 per cent - to pass on the benefit of Re 1 to customers. For diesel, the existing rate of 24.5 per cent on taxable value will be reduced to 22.77 per cent", sources from the Kerala finance ministry explained. |
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