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Karnataka slashes sales tax on petrol, diesel
Thursday, 19 June 2008, 19:30 IST
Bangalore: The Karnataka government Thursday reduced sales tax by three percent on petrol and two percent on diesel to give marginal relief to consumers across the state.
The state government has also reduced value added tax (VAT) on domestic liquefied petroleum gas (LPG) from four percent to one percent to give a relief of 
10.34 on each cylinder of cooking gas.
"The reduced retail prices of petrol, diesel and LPG will come into effect from Friday. To protect the people of Karnataka from the hike in petroleum products by the central government, the state government has decided to give a relief of 1.35 per litre on petrol and 65 paise per litre on diesel," Panchayati Raj and Rural Development Minister Shobha Karandlaje told reporters here.
The price of LPG has been reduced to 348.08 from 358.42. The price of a cooking gas cylinder in the state before the 50 hike by the central government was 306.86.
As a result of the reduction in sales tax on petrol from 28 to 25 percent, retail price of the fuel in Bangalore will be 57.15 per litre as against 58.89. Prior to the hike of 5 by the centre, the price was 52.89.
Following reduction in sales tax on diesel from 20 percent to 18 percent, retail price in Bangalore will be 39.15 per litre as against 39.80. Prior to the hike of 3, the price was 36.43.
The entry tax of five percent on petrol and diesel will remain unchanged. The tax reduction on the three main petroleum products will result in a loss of 2.75 billion to the state exchequer in the remaining nine months of this fiscal (2008-09)
"Petroleum products in Karnataka are sold at the highest rate in the country as the basic price at which oil marketing companies (OMCs) supply in the state is higher than in any other state, especially in the southern region. The state cabinet has decided to write to the central government on the injustice being done to the state over the last 10 years, when the price was last revised," Karandlaje said.
For instance, the issue price of petrol in Karnataka is 42.75 per litre as against 41.55 in Tamil Nadu, 41.80 in Andhra Pradesh, 40.50 in Kerala and 42 in Maharashtra.
Similarly, the issue price of diesel in Karnataka is 31.09 as against 30.05 in Tamil Nadu, 30.75 in Andhra Pradesh and 30 in Kerala.
"The issue price of petrol and diesel are higher in Karnataka although Mangalore Refinery and Petrochemicals Ltd (MRPL) is located in the state. Chief Minister B.S. Yeddyurappa, who also holds the finance portfolio, will write to the prime minister, finance minister and petroleum minister on the discrimination against the state on the issue price to resolve the anomaly," Karandlaje said.
Source: IANS
10.34 on each cylinder of cooking gas.
"The reduced retail prices of petrol, diesel and LPG will come into effect from Friday. To protect the people of Karnataka from the hike in petroleum products by the central government, the state government has decided to give a relief of 1.35 per litre on petrol and 65 paise per litre on diesel," Panchayati Raj and Rural Development Minister Shobha Karandlaje told reporters here.
The price of LPG has been reduced to 348.08 from 358.42. The price of a cooking gas cylinder in the state before the 50 hike by the central government was 306.86.
As a result of the reduction in sales tax on petrol from 28 to 25 percent, retail price of the fuel in Bangalore will be 57.15 per litre as against 58.89. Prior to the hike of 5 by the centre, the price was 52.89.
Following reduction in sales tax on diesel from 20 percent to 18 percent, retail price in Bangalore will be 39.15 per litre as against 39.80. Prior to the hike of 3, the price was 36.43.
The entry tax of five percent on petrol and diesel will remain unchanged. The tax reduction on the three main petroleum products will result in a loss of 2.75 billion to the state exchequer in the remaining nine months of this fiscal (2008-09)
"Petroleum products in Karnataka are sold at the highest rate in the country as the basic price at which oil marketing companies (OMCs) supply in the state is higher than in any other state, especially in the southern region. The state cabinet has decided to write to the central government on the injustice being done to the state over the last 10 years, when the price was last revised," Karandlaje said.
For instance, the issue price of petrol in Karnataka is 42.75 per litre as against 41.55 in Tamil Nadu, 41.80 in Andhra Pradesh, 40.50 in Kerala and 42 in Maharashtra.
Similarly, the issue price of diesel in Karnataka is 31.09 as against 30.05 in Tamil Nadu, 30.75 in Andhra Pradesh and 30 in Kerala.
"The issue price of petrol and diesel are higher in Karnataka although Mangalore Refinery and Petrochemicals Ltd (MRPL) is located in the state. Chief Minister B.S. Yeddyurappa, who also holds the finance portfolio, will write to the prime minister, finance minister and petroleum minister on the discrimination against the state on the issue price to resolve the anomaly," Karandlaje said.
Source: IANS