Tax cut on petrol, diesel in Karnataka likely today

Chief Minister H D Kumaraswamy, who recently hinted at his government’s intentions to slash taxes on fuel, is said to have directed the finance department to take necessary steps to reduce duty on petrol and diesel by at least Rs 2 to Rs 2.50 per litre.

There are strong rumours that the government might issue an order to this effect on Monday.

Kumaraswamy had in his budget announced increase in sales tax on petrol and diesel. This had resulted in a hike in fuel prices.

Sources said that during a meeting with officials of departments including excise, transport, mines and geology and commercial taxes, Kumaraswamy was told that this year’s tax collection had exceeded target. Officials also expressed confidence that the state’s financial condition has improved, and that the schemes and programmes announced in the budget, including the farm loan waiver scheme, would not be affected. This has pushed Kumaraswamy to take the decision regarding tax reduction.