The cost now stands reduced in proportion to the centre’s reduction. Kerala follows a percentage-based calculation for fuel prices in state. Presently, although crude oil in global markets is priced low, the prices here are inflated by the Centre by incessantly upping the Special Excise Tax on it, said the minister. And, it was Manmohan Singh who scrapped that system. Under the scheme, govt shelled out subsidy to hold down fuel prices at fixed levels. There existed a system in India by the name “Oil Pool”. The Oomen Chandy govt, on the other hand, raised tax 13 times during its tenure, said the minister to media. In fact, the government reduced the tax rate once in that time. The state government never raised tax on fuel for past six years. Imposing central cess amounts to infringement of the country’s federal system, the minster said. That kind of tax runs against the constitution of India. In fact, the Central government is not empowered to impose special excise duty. Prices are at a high point owing to uncontrolled escalation of special excise duty by the centre, the minister added, speaking at press conference in the capital Friday. Thiruvananthapuram: Fuel prices in Kerala have reduced in proportion to the slash recently effected by Centre, said Finance Minister KN Balagopal.
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