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Sales Tax on petrol, diesel, VAT on LPG reduced in Karnataka

The Karnataka government on Thursday reduced sales tax on petrol and diesel by 3 and 2 per cent respectively and Value Added Tax on LPG cylinder by 3 per cent, to cushion consumers from the recent fuel price hike.



 

The tax on petrol has been reduced by 3 per cent and that of diesel by 2 per cent, while VAT on LPG was brought down from 4 per cent to 1 per cent, Shoba Karandlaje told reporters after a Cabinet meeting today.

Consequently, prices of petrol would come down by Rs 1.35 to Rs 57.15 per litre from the existing rate of Rs 58.50 per litre. Diesel would come down by 65 paise to Rs 39.15 per litre from Rs 39.80 per litre, Karandlaje said.

LPG would see a price reduction of Rs 10.34 to Rs 348.08 from the current Rs 358.42 per cylinder, she added.

The new prices would come into effect from tomorrow, the minister said.

She said the prices cut would cost the state exchequer Rs 275 crore revenue annually.

The Union Government had earlier this month hiked petrol, diesel and LPG prices.

Several states have, thereafter, reduced taxes on petrol, diesel and LPG to lessen the burden of the price hike on consumers.

Source : Hindu - Chennai, India,  dated 19/06/2008

 

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