'Must see our economy also', says Karnataka CM Basavaraj Bommai on fuel tax cut

Karnataka Chief Minister Basavaraj Bommai on Wednesday did not commit to cutting sales tax on fuel after Prime Minister Narendra Modi chided Opposition-ruled states over high petrol prices.

“We will see. We must see our economy also. Based on that we will decide,” Bommai told reporters when asked if Karnataka will go for another cut in fuel tax.

In November 2021, the Bommai administration cut sales tax on petrol from 35% to 25.9% and that on diesel from 24% to 14.34%. This move resulted in petrol price reducing by Rs 13.30 per litre and diesel by Rs 19.47 per litre.

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Currently, a litre of petrol costs Rs 111.09 and diesel costs Rs 94.79 in Bengaluru.

“The PM gave an example citing Karnataka. Last November, after the Centre cut excise duty, some states followed suit and it benefited citizens in a cooperative federal set up. It will help if other states reduce tax so that neighbouring states aren’t affected,” Bommai said.

At a video conference earlier in the day, PM Modi specifically named Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala and Jharkhand for not cutting fuel tax since last November. “If Karnataka had not cut tax, it would have mopped a revenue of Rs 5,000 crore in these six months. Similarly, if Gujarat hadn’t cut tax, it would have earned an additional Rs 3,500-4,000 crore,” Modi said.

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