Prices of petrol and diesel increased in this state, After the elections| Congress green signal to the decision

A worker puts a petrol nozzle into a bike fuel tank in Mumbai, India, 15 July, 2022. Petrol price slashed by Rs 5 per litre in Mumbai according to an Indian media report. (Photo by Indranil Aditya/NurPhoto via Getty Images)

The Karnataka government has increased the sales tax on petrol and diesel. As a result, their prices have gone up. In the state, petrol has become more expensive by 3 rupees and diesel by 3.20 rupees. According to a government order, the sales tax on petrol has been increased from 25.92% to 29.84%, and on diesel from 14.34% to 18.44%.

The state government announced the tax increase on petrol and diesel on June 15. According to a state government notification, the Karnataka Sales Tax (KST) on petrol has been increased from 25.92 percent to 29.84 percent, and on diesel from 14.3 percent to 18.4 percent. The notification issued by the finance department states that this will be effective immediately. Currently, in Bengaluru, petrol is being sold at 99.84 rupees per liter, while diesel is at 85.93 rupees per liter.

The Congress party’s promises are affecting the common man’s pocket.

A senior official of the finance department said that the increase in fuel prices will help raise about 2,500-2,800 crore rupees in this financial year. The Congress party had announced guarantees when forming the government in the state, for which the state government has imposed an additional excise duty (AED) of 20 percent on all slabs of Indian-made liquor (IML) and increased AED on beer from 175 percent to 185 percent, imposed an additional tax of 3 percent on newly registered transport vehicles, applied a lifetime tax on electric vehicles (EVs) costing more than 25 lakh rupees, and accelerated tax collection.

Is the government running at a loss?

Siddaramaiah’s revenue-deficit budget for 2024-25 has a total revenue of 3,71,383 crore rupees. With a deficit of 27,354 crore rupees, this is possibly the first time that annual borrowing in any financial year has exceeded 1 lakh crore rupees.