Since the central government has monopolized GST,the tax collection opportunities which were the prerogative of the states are gone

Dr.Thomas (Sub-Editor)


*With the objective of mobilizing resources for the development works of the state in a way that does not burden the people,petrol and diesel sales tax increased by Rs.3.

*The CM clarified along with statistics that despite the increase in petrol and diesel prices by 3,it is less than other southern states and BJP-ruled states.

*After the implementation of the GST system by the Central Government,the scope for resource mobilization of the state governments is limited.

Central Government collects GST,taxes from sources like Income Tax,Central Excise Duty etc.The state government has no sources except registration and stamp duty, vehicle tax, sales tax on petrol,diesel and sales tax on liquor.

*In this background,the chief minister clarified that the state government has increased the tax by a small amount,noting that the prices of petrol and diesel in the state are low compared to other states.

Nothing that BJP is protesting about this,the CM asked where do they have the moral right to protest.During Dr.Manmohan Singh’s tenure, the price of crude oil in the international market was 113 dollars.

Although this price was halved in 2015,Narendra Modi did not show any concern to bring down the price and reduce the burden on the people.He asked who should the BJP fight against?

Even though Karnataka state has been subjected to continuous injustice by the BJP government, BJP has not raised its voice?.

MPs have not spoken on the issue when taxation is unfair;Although the 15th Finance Commission has recommended a special grant to the state, the central government has not given it.

Nirmala Sitharaman allocated Rs.5,000 crore in the budget for Bhadra Upper Bank Project.Although it was announced that it would be provided,no money was given.

Has the BJP raised its voice on these issues?He said BJP has an anti-poor,anti-Dalit attitude.

We had to go to court to seek compensation for drought.They have given us Rs.3,454 crore when we had asked for Rs.18,000 crores as relief.

BJP is against welfare programmes for poor,dalits and common people.Don’t their financial power increase if they are given free bus travel,2000 per month? Don’t they save money if free electricity is given?They did not provide extra rice when we requested them. Did anyone speak? He questioned.

Rs.3,000 crores resources will be available from this price hike.Rs.6000 crore is required for guarantee schemes.

How do the opposition leaders say that the government is bankrupt? Have we stopped paying anyone?He questioned whether the programmes announced in the budget have been stopped without providing grants.

Defending the rise in oil prices,the Chief Minister explained that despite the rise in prices,the state’s petrol and diesel prices are lower than neighbouring states and BJP-ruled states.

3000 crores revenue can be generated from this price hike.60,000 crore is required for guarantee schemes. Who are we giving it to?Are we giving to the rich?
Are we waiving off loans to Ambani and Adani?Not a rupee of farmers loan is waived.Do they have the moral right to question us,the CM criticized.

How does opposition leader R.Ashok say that the government is bankrupt?Have we stopped paying anyone? He questioned whether the programmes announced in the budget have been stopped without providing grants.

Defending the rise in oil prices,the Chief Minister explained that despite the rise in prices,the state’s petrol and diesel prices are lower than neighboring states and BJP-ruled states.

When Narendra Modi came to power,the central excise duty on petrol was Rs 9.48.It increased to Rs.32.98 in May 2020.

Neither BJP nor R.Ashok has spoken against this level of increase.He snapped that if he understood,he would.

*Fuel price in our state is lower than BJP ruled states even after tax hike on petrol-diesel.

*If the central government had given the state’s share to the people of the state,there would be no need to raise taxes.

Chief Minister Siddaramaiah explained along with statistics that even after the increase in tax on petrol-diesel,the fuel price in our state is lower than the BJP-ruled states and the states of South India.

Addressing a press conference at Home Office Krishna, the CM explained how the Modi government at the centre created an environment in which the necessity of tax increase was inevitable and also explained the situation created due to non-payment of the state’s share.

The Chief Minister explained with figures that after 2015,even when the price of crude oil was reduced by half in the international market,the Modi government continuously raised the price of fuel without giving the benefit to the people of the country.

He said that the estimated three thousand crore rupees collected from the increase in value added tax on petrol and diesel will be paid to the state treasury and that the money will be allocated for people’s welfare programmes and it will not go into our pockets,he said.

In the previous BJP government,40% of the tax money in every scheme of the state went into the pockets of BJP leaders.

In this way,approximately one and a half lakh crore rupees of the hard earned money of the people of the state have been filled in the pockets of these BJP leaders,he said.

Where does the looting,corrupt,anti-people BJP leaders have the dignity to question the marginal increase in taxes for public welfare,the CM asked.

The state government is spending 60 thousand crore rupees for guarantee schemes.This amount goes to the poor and middle class of all caste-communities of the state.

The current marginal increase in diesel-petrol tax will generate additional resources of only Rs.3,000 crore.

But we are giving 60 thousand crore rupees for guarantees.Thus R.Ashok’s silly words do not make sense.He sarcastically said that R.Ashok does not understand all this,nor is he capable of understanding it.

Minister Chaluvarayaswamy, Bairathi Suresh, MLA Narendraswamy, Gopalakrishna Belur and many others were present in the Press conference.