Karnataka Chief Minister Siddaramaiah on Monday ruled out any reduction in fuel taxes in the state, stating that the government's revenue is essential for funding welfare programs. The announcement comes amid rising petrol and diesel prices across the country.
No Tax Cut Despite Price Hike
Speaking to reporters in Bengaluru, Siddaramaiah said that the state government will not follow the central government's recent tax cut on fuel. He emphasized that Karnataka's tax structure is necessary to generate revenue for various development and welfare schemes.
Revenue for Welfare Schemes
The Chief Minister highlighted that the state government requires substantial funds to implement programs like the Anna Bhagya scheme, which provides free food grains to the poor, and other social welfare initiatives. He argued that reducing fuel taxes would adversely impact the state's finances.
“We cannot reduce fuel taxes as we need the revenue for the welfare of the people. The central government may have reduced its taxes, but we have to manage our resources carefully,” Siddaramaiah said.
Comparison with Central Tax Cut
In November 2021, the central government reduced excise duty on petrol and diesel by Rs 5 and Rs 10 per litre, respectively. However, many states, including Karnataka, did not follow suit. The Karnataka government currently levies a value-added tax (VAT) of 29% on petrol and 18% on diesel, among the highest in the country.
Opposition parties have criticized the state government for not passing on the benefits of the central tax cut to consumers. However, Siddaramaiah defended the decision, stating that the state's fiscal situation does not allow for such a move.
Impact on Common People
The high fuel prices have been a burden on the common man, affecting transportation costs and leading to inflationary pressures. Petrol prices in Bengaluru are currently around Rs 100 per litre, while diesel costs approximately Rs 87 per litre.
Consumer rights activists have demanded a reduction in taxes, but the state government remains firm on its stance. Siddaramaiah assured that the government is taking other measures to control inflation and provide relief to the people.
