Petrol, Diesel, Liquor In Karnataka To Get Costlier On Increased Taxes

To make up for budget constraints, the Karnataka government on Thursday announced an increase in state taxes on petrol and diesel. With effect from 1 April 2020, state taxes applicable on petrol will be raised from 32 percent to 35 percent and on diesel from 21 percent to 24 percent.

Petrol price per litre is expected to get costlier by Rs 1.60 and diesel per litre will likely cost Rs 1.59 more.

At the budget presentation in the State Assembly, Chief Minister BS Yediyurappa, who also holds the finance portfolio, also raised excise duty on Indian Made Liquor (IML) across all 18 slabs by 6 percent.

Among other announcements, the state budget proposed a reduction in stamp duty for first time registration of new apartments/flats costing less than Rs 20 lakh from 5 percent to 2 percent.

"For the year 2020-21, a total amount of Rs 55,732 crore is provided for stimulating economic growth sector," the Karnataka Chief Minister said. He further said that revenue collection target for the Commercial Taxes Department for the upcoming financial year 2020-21 is fixed at Rs 82,443 crore.