Chief minister H.D. Kumaraswamy has included a host of tax hikes in the budget, which he has argued as necessary steps to “augment resource mobilisation” towards fulfilling the promise of loan waiver to farmers.
The budget has increased rate of tax on petrol from the present 30% to 32%, hiking petrol prices in the State by ₹1.14 per litre and rate of tax on diesel from the present 19% to 21% hiking its price by ₹1.12 per litre.
The Chief Minister said even with this hike the prices of petrol and diesel would be lower in Karnataka when compared to the neighbouring States.
Mr. Kumaraswamy has also imposed an additional Excise Duty on Indian Made Foreign Liquor (IMFL)by 4% on all 18 slabs, over and above the existing excise duty.
In Motor Vehicle Taxes, an increase of 50% is proposed for private sector service vehicles based on sqm of floor area.
Energy is all set to become dearer as taxation on consumption of electricity has been increased from existing 6% to 9%. The rate of taxation on consumption of captive energy is proposed to be doubled from 10 paise per unit to 20 paise per unit.
