Karnataka waives farm loans but makes fuel, liquor and power costly
CM Kumaraswamy said he was increasing the levies on fuel, power and liquor to generate more revenue and reduce the burden of Rs 34,000 crore worth crop loan waiver on the exchequer.india Updated: Jul 05, 2018 18:36 IST
Petrol, diesel, liquor and power will soon be costly in Karnataka as the budget for 2018-19 on Thursday proposed higher levies on them to generate additional resources.
“I propose to increase tax on petrol and diesel by 2 per cent, (levy) additional excise duty on Indian made liquor brands (at) 4 per cent, tax on captive power (by) 20 paise per unit and motor vehicle tax on commercial vehicles (by) 50 per cent,” Chief Minister HD Kumaraswamy said in his budget speech.
Presenting his maiden budget, Kumaraswamy, who holds the Finance portfolio, told the legislators that he was increasing the levies to generate more revenue and reduce the burden of Rs 34,000 crore worth crop loan waiver on the exchequer.
The 2 per cent hike in the sales tax on petrol to 32 per cent from 30 per cent will increase its price by Rs 1.14 per litre.
Similarly, 2 per cent hike in sales tax on diesel to 21 per cent from 19 per cent will increase its price by Rs 1.12 per litre.
Incidentally, the state-run oil marketing firms increased the fuel prices on Thursday due to rise in international rates and a weakening rupee.
Following the hike, petrol in Bengaluru on Thursday was Rs 76.94 per litre and diesel Rs 68.47 per litre.
The revised excise revenue target will be Rs 19,750 crore as against Rs 18,750 crore set in the provisional budget presented by the previous Chief Minister Siddaramaiah, of the Congress, on February 16 for this fiscal.
Similarly, the state will generate Rs 6,656 crore from the revised motor vehicle tax proposal.
First Published: Jul 05, 2018 17:26 IST