There is good news News for people living in Kerala as the state government has decided to reduce taxes on fuel. Petrol and diesel will now be cheaper by Rs 1 in Kerala and will come into effect from June 1. Finance minister Thomas Isaac has said tax reduction could lead to a loss of Rs 500 crore. Petrol and diesel price in Kochi on Tuesday was at Rs 81.17 and Rs 73.77 respectively. The decision to reduce tax was taken today at a Cabinet meeting of the state.
In the Past few days, petrol prices have increased across the country by over Rs 4 per litre. The reason behind the increase in petrol prices in the country is the rise in the crude oil cost and high taxes levied by the central and state government.
Kerala is one of the states that it charge high tax rates on petrol and diesel. Maharashtra and Punjab, however, tops the list when it comes to levying Taxes. Petroleum prices do not fall under the ambit of GST and are one of the big sources of revenue for the state government.