Karnataka Small Scale Industries Association (KASSIA) has appealed to Chief Minister Basavaraj Bommai to immediately cut the existing sales tax of 35% and also urged the Centre to reduce the excise duty of ₹32.90 charged by it per litre.
The return of fuel consumption level to pre-Covid times indicates that the economy was on the rebound and therefore there was no need for the government to delay its decision to reduce the duty on it, KASSIA stated.
The trade body said the steep rise in prices have adversely impacted the lives of workers and operations of micro and small scale enterprises in the State.
“The State, as well as the Centre, should act collectively to pare down the price rise otherwise the situation will run out of control and let inflationary conditions into the economy,” it said.
“This is leading to other complications such as demands by workers to increase their salaries to meet their rising commuting cost as most of them use their own vehicle for the commute. Even in the case of those workers who use public transport for work, there is a real possibility that they too will be increasing the fare sooner than later,” Kassia said in a press release.
“On the other hand, many vendors have signed up one year or more contract with their purchasers, and now the increase in diesel price has effectively reduced their margin which they cannot pass onto their customers,” said P. Shashidhar, Administrator, KASSIA.
