BANGALORE: Despite the BJP’s opposition to the latest petrol price hike, the state government is still undecided on reducing the sales tax on petrol.Karnataka — which has among the nation’s highest fuel prices — could take cue from Goa and Kerala, which have already slashed the sales tax. The state charges 25 per cent sales tax and 5 per cent entry tax on fuel, and according to sources, the issue price in Karnataka is high. The state government, though, defended its sales tax figures and sought a roll back from the Union government. Home Minister R Ashok said on Thursday, “If the Centre decreases the tax rate, we will follow suit.” Other leaders stated that they would meet Chief Minister D V Sadananda Gowda once he returns from Mumbai to discuss the possibility of reducing sales tax on petrol.“It is the mindset of the state government not to reduce sales tax as it does not want to reduce its revenue,” said president of Federation of Karnataka Chambers of Commerce and Industry J R Bangera.He added that they will write to the Chief Minister on the issue and also meet him in person requesting for a reduction in sales tax.With no respite in sight, Bangaloreans may have to shell out Rs 82 per litre of petrol as against Rs 74 in the national capital.
Comments
0 comment