Karnataka: Basavaraj S Bommai government cuts diesel price by Rs 19
Bangalore:
Karnataka is the first among 10 BJP-ruled states to drastically cut fuel prices this Diwali, bringing a major relief to people, especially commercial transporters, who depend on diesel-powered automobiles for long distance freight. Huh.
In a statement, the Chief Minister’s Office of Karnataka said that diesel has now become cheaper by Rs 19 in the state.
The Chief Minister’s Office said that the diesel price has been reduced by Rs 7 by the state, apart from a further reduction of Rs 10 by the Centre, taking the total reduction to Rs 19.47 per liter after further reduction in sales tax.
Similarly, the price of petrol in Karnataka has been reduced by Rs 13.30 – Rs 7 by the state and Rs 5 by the Center and reduction in sales tax.
Diesel now costs Rs 85.03 in Karnataka, while petrol costs Rs 100.63.
The opposition parties were giving lectures about the hike in the prices of petrol and diesel.
tomorrow, PM @Narendra Modi Government reduced excise duty on petrol and diesel.
NDA State Governments immediately reduced VAT on them benefiting crores of people.
Opposition ruled states are yet to reduce it.
— BJP Karnataka (@BJP4Karnataka) November 4, 2021
Chief Minister Basavaraj S Bommai-led government said in a statement that the state’s share in sales tax on petrol has been reduced from 35 per cent to 25.9 per cent and on diesel from 24 per cent to 14.34 per cent.
After cutting fuel prices, Karnataka BJP took a dig at the opposition parties and the states ruled by them for not fulfilling the promises of cutting state tax on fuel.
“Opposition parties were giving lectures about hike in prices of petrol and diesel. Yesterday, Prime Minister Narendra Modi government reduced excise duty on petrol and diesel. NDA (National Democratic Alliance) state governments immediately imposed VAT (VAT) on them. Value Added Tax), benefiting crores of people. Opposition ruled states have yet to reduce it,” the Karnataka BJP tweeted.
The tax relief comes on the eve of Diwali, which marks the start of a busy festive season with an increase in consumer spending. The Center will face a revenue loss of Rs 550 billion to Rs 600 billion from tax cuts, news agency Reuters reported on condition of anonymity, quoting an unnamed source.
India has seen a steady rise in consumer spending in recent months, with the easing of restrictions on travel and business operations due to a fall in the number of coronavirus cases.
But high fuel prices are hurting the margins of the corporates as well as the farmers, who contribute significantly to the economy. The reduction in fuel taxes is likely to provide incentives to manufacturers and farmers.
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