Kerala CM reduces fuel prices, will Tarun Gogoi do the same

By– Staff Reporter | Date– May 19, 2011 | Place – Guwahati

The new chief minister of Kerala, Oommen Chandy, who assumed office yesterday after winning the assembly elections, announced a sales tax cut on the recently hiked petrol price. He declared that his new government has decided to waive the sales tax on the hiked portion of the petrol price, which would bring the price down by Rs.1.22 per litre.

It is to be noted that the oil marketing companies had recently increased the petrol price by Rs.5.39 per litre. The reduction in sales taxes in Kerala is expected to bring some relief for the public. Chandy’s stand with petrol prices, immediately after assuming the role of the chief minister has been taken in high spirits by the public and is considered as a welcome move. However the economists are raising concern as the state’s revenue would come down by around 131.94 cores with the cut in sales taxes.

The stand by the newly formed Kerala Government has set up an example for the rest of the governments recently formed in the other four states. It would be interesting to see what our chief Minister of Assam, Tarun Gogoi would take to reduce or control oil and other commodity prices. However going by previous experiences, Tarun Gogoi would not dare to play with or decrease taxes to bring down oil prices in his oil rich state. This is because of the close association with the corporate sector that Gogoi and his group has.

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