State to gain from diesel price hike

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Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsThe Karnataka government is laughing all the way to the bank. The Rs 5 per litre increase in the price of diesel, which was announced by the Centre last week, will fetch the state an additional Rs 35 crore a month.Karnataka charges more than 22 per cent in taxes on diesel. The Commercial Tax Department earned more than Rs 4,800 crore last year from petrol and diesel. In all, 468.2 crore litres of diesel was sold in the state in the last financial year.Senior government officials told Express that the latest increase would yield an additional 90 paise in tax on each litre of diesel sold in the state. And that would mean an additional revenue of more than Rs 225 crore in the rest of this financial year. If diesel sales keep rising as they have, the windfall for the state government will be larger.It gets better: The Centre gets hauled over the coals for increasing the price of diesel, but the state quietly benefits from it. Ironically, the BJP has criticised the Central government for the price hike, but the BJP government in Karnataka has not shown any inclination to reduce the burden on the common man by cutting tax.In April this year, following an increase in the price of petrol, the BJP government in Goa reduced taxes.Karnataka has one of the highest rates of tax on diesel in the country.Repeated attempts by Express to get senior officials to comment on this matter were unsuccessful.CM to Hold Talks On Tax IssueChief Minister Jagadish Shettar said in Gulbarga on Monday that he would discuss a reduction of the tax on diesel with officials. Shettar said truck owners had threatened to go on strike if the tax was not cut. The government would take a decision after discussing the issue with officials and truck owners.first published:September 18, 2012, 10:27 ISTlast updated:September 18, 2012, 10:27 IST
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The Karnataka government is laughing all the way to the bank. The Rs 5 per litre increase in the price of diesel, which was announced by the Centre last week, will fetch the state an additional Rs 35 crore a month.

Karnataka charges more than 22 per cent in taxes on diesel. The Commercial Tax Department earned more than Rs 4,800 crore last year from petrol and diesel. In all, 468.2 crore litres of diesel was sold in the state in the last financial year.

Senior government officials told Express that the latest increase would yield an additional 90 paise in tax on each litre of diesel sold in the state. And that would mean an additional revenue of more than Rs 225 crore in the rest of this financial year. If diesel sales keep rising as they have, the windfall for the state government will be larger.

It gets better: The Centre gets hauled over the coals for increasing the price of diesel, but the state quietly benefits from it. Ironically, the BJP has criticised the Central government for the price hike, but the BJP government in Karnataka has not shown any inclination to reduce the burden on the common man by cutting tax.

In April this year, following an increase in the price of petrol, the BJP government in Goa reduced taxes.

Karnataka has one of the highest rates of tax on diesel in the country.

Repeated attempts by Express to get senior officials to comment on this matter were unsuccessful.

CM to Hold Talks On Tax Issue

Chief Minister Jagadish Shettar said in Gulbarga on Monday that he would discuss a reduction of the tax on diesel with officials. Shettar said truck owners had threatened to go on strike if the tax was not cut. The government would take a decision after discussing the issue with officials and truck owners.