Karnataka CM Siddaramaiah defends hike in petrol and diesel prices

Dr.Thomas (Sub-Editor)

T he Government of Karnataka has increased VAT on petrol to 29.84% and on diesel to 18.44%.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% plus Rs.5.12 additional tax,and on diesel,it is 21%.Karnataka’s revised rates are still more affordable.

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 kept reducing VAT on petrol and diesel while the Central govt increased its own taxes.

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 BJP Government,the Central Excise Duty on Petrol and Diesel was steeply increased reaching to a record high of Rs.32.98 and Rs. 31.83,respectively,in May 2020.

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.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.