JOIN USFuel, power, liquor get costlier as HDK mobilises funds
Karnataka Chief Minister H D Kumaraswamy on Thursday announced a hike in the prices of petrol and diesel by Rs 1.14 per litre and Rs 1.12 per litre respectively to mobilise resources for the Rs 34,000-crore farm loan waiver.
In his 2018-19 Budget presented in the Karnataka Legislative Assembly, the Chief Minister also announced a hike in additional excise duty on all brands of Indian-Made Foreign Liquor (IMFL) by 4%. A crop loan of up to Rs 2 lakh availed by the farmers will also be waived.
As part of his Additional Resources Measure Scheme to fund the loan waiver, Kumaraswamy, who also holds the Finance portfolio, increased the tax on consumption of electricity from 6% to 9%. Private vehicles will now cost more as the Chief Minister has increased motor vehicle tax by 50% based on square metre floor area.
Kumaraswamy was under immense pressure to waive farm loans. Faced with financial constraints, he resorted to hiking sales tax on fuel and liquor.
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