BENGALURU: Karnataka Chief Minister Siddaramaiah said on Sunday that the government remains committed to keeping fuel prices reasonable for their citizens and said despite VAT hike, diesel prices in Karnataka are still lower than in Gujarat and Madhya Pradesh.
“The Government of Karnataka has increased VAT on petrol to 29.84 percent and on diesel to 18.44 per cent. Even after this hike, our state’s taxes on fuel remain lower than most South Indian states and similar economy-sized states like Maharashtra. In Maharashtra, the VAT on petrol is 25 per cent plus Rs 5.12 additional tax, and on diesel, it is 21 percent. Karnataka’s revised rates are still more affordable,” CM Siddaramaiah told reporters here.
“Despite the VAT hike, diesel prices in Karnataka are still lower than in Gujarat and Madhya Pradesh. We remain committed to keeping fuel prices reasonable for our citizens. The then double-engine BJP government collaborated to divert Karnataka’s resources to other states. The state BJP govt (previous) kept reducing VAT on petrol and diesel while the Central govt increased its taxes,” CM added.
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CM Siddaramaiah alleged that the central excise duty on petrol and diesel was steeply increased during the tenure of the BJP government.
“This manipulation led to reduced revenue for Karnataka, while the Central government collected more for its coffers, cheating Kannadigas. Central Excise duty on petrol was Rs 9.48 per litre and Rs 3.56 on diesel before BJP came to power in 2014. However, during the tenure of the BJP Government, the Central Excise Duty on Petrol and Diesel was steeply increased reaching a record high of Rs 32.98 and Rs 31.83, respectively, in May 2020,” CM Siddaramaiah added.
“Subsequently, the Excise duty on petrol and diesel was cut by Rs 13 a litre and Rs 16, respectively, between November 2021 and May 2022. Despite the reductions, the current central excise duty on petrol is Rs 19.9 and on diesel is Rs 15.8,” CM Siddaramaiah added.
CM Siddaramaiah added: ” We urge the Union Government to reduce these taxes for the benefit of the people. Karnataka’s VAT adjustment ensures we can fund essential public services and development projects. The state remains committed to balanced and responsible governance.”
Earlier in the day, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said that the Congress-led Karnataka government has saddled the people of Karnataka with the burden of paying Rs 3 per litre more for petrol and diesel in the state.
“After not fulfilling the promises of transferring Rs 8500/month to a woman of each family, Congress-led Karnataka government has saddled the people of Karnataka with the burden of paying Rs 3/litre more for petrol and diesel in the state,” Hardeep Puri said in a post on X.
The increase in the price of petrol and diesel comes following an official notification from the Government of Karnataka, which indicates a revision in the sales tax levied on petroleum products.
The price of petrol has surged by Rs 3, bringing the cost per litre in Bengaluru to Rs 102.84, up from the previous rate of Rs 99.84. Similarly, the price of diesel has increased by Rs 3.02, raising the cost per litre from Rs 85.93 to Rs 88.95.
According to the Petroleum Dealers Association, the price has increased because the state government has revised the sales tax in the state, which is levied on petroleum products in the state.
According to the notification, the sales tax on petrol has been increased from 25.92 percent to 29.84 percent, while the tax on diesel has risen from 14.3 percent to 18.4 percent by the state government. (ANI)
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