Karnataka government lowered tax on diesel and petrol by Rs. 7 per litre

BENGALURU: The Karnataka government issued a notification on Thursday lowering the price of diesel and petrol by Rs. 7 per litre, following a similar decrease by the Centre of Rs. 10 and Rs. 5 per litre. According to a press release from the state administration, Karnataka is the first state to lower sales taxes on petrol and diesel.

Diesel prices were cut by Rs. 19.47 from Rs. 104.50 on November 3 to Rs. 85.03 as a result of this.

According to the statement, petrol prices were decreased from Rs. 113.93 on November 3 to Rs. 100.63, a reduction of Rs. 13.30.

By virtue of notification, Karnataka’s share of Sales Tax on Petrol has been decreased from 35 to 25.9%, and that on Diesel has been reduced from 24 to 14.34 percent.

Under pressure, the national government lowered excise duty on petrol and diesel by Rs. 5 and Rs. 10 per litre on Wednesday to help bring costs down from their highest-ever levels, prompting the state government to announce its own reduction.

Earlier, chief minister Basavaraj Bommai told reporters in Hubballi that the state government had been considering price reductions since fuel prices breached the Rs. 100 level, and that it may result in a loss of Rs. 2,100 crore to the state’s coffers.

“After the central government’s decision to reduce fuel prices I spoke to the Union Finance and Home Minister and they expressed desire that the state slash the prices. I spoke to our senior officials and decided on it” he added.

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