A hike in fuel prices will ensure financing of essential services CM Siddaramaiah
Karnataka Chief Minister Siddaramaiah on Sunday defended the hike in petrol and diesel prices, saying it will ensure financing of essential public services and development projects.
With the opposition BJP and its ally JD(S) coming down heavily on the Congress government for increasing petrol and diesel prices by Rs 3 and Rs 3.5 per liter respectively, Siddaramaiah said that even after the increase, taxes on fuel stay low compared to most. southern states.
“The Karnataka government has increased VAT on petrol to 29.84 per cent and on diesel to 18.44 per cent. Even after this increase, taxes on fuel in our state remain lower than most south Indian states and states of similar economic size to Maharashtra,” the government said. The Prime Minister said this in a statement.
According to him, VAT on petrol is 25 percent plus Rs 5.12 additional tax, and on diesel in Maharashtra it is 21 percent. Karnataka’s revised rates are still more affordable, he pointed out.
“Karnataka’s VAT adjustment ensures that we can finance essential public services and development projects. The state remains committed to balanced and accountable governance,” Siddaramaiah stressed.
Stating that despite the VAT hike, diesel prices in Karnataka are still lower than in Gujarat and Madhya Pradesh, the Chief Minister said, “We remain committed to keeping fuel prices reasonable for our citizens.”
He has also criticized the opposition party BJP, which has decided to stage statewide protests on Monday.
“The then double-engine BJP government conspired to shift resources from Karnataka to other states. The state BJP government continued to reduce VAT on petrol and diesel while the central government increased its own taxes,” the chief minister said.
He alleged that this manipulation by the previous BJP government in the state led to lower revenues for Karnataka, “while the central government collected more for its exchequer and cheated Kannadigas.”
Siddaramaiah said the central excise duty on petrol was Rs 9.48 per liter and Rs 3.56 on diesel before the BJP came to power in 2014. However, during the tenure of the BJP government, the central excise duty on petrol and diesel was hiked sharply. reaching an all-time high of Rs 32.98 and Rs 31.83 respectively in May 2020.
Subsequently, excise duty on petrol and diesel was reduced by Rs 13 per liter and Rs 16 liter respectively between November 2021 and May 2022, he added.
“Despite the reductions, the current central excise duty on petrol is Rs 19.9 and on diesel Rs 15.8. We urge the Union government to reduce these taxes for the benefit of the people,” the Prime Minister said.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: June 16, 2024 | 5:48 PM IST