Petrol, diesel prices to rise after Karnataka govt proposes tax hike
The Karnataka government on Thursday proposed to increase rate of tax on petrol and diesel by three per cent which would make the fuel dearer by Rs 1.60 and Rs 1.59 per litre, respectively. Presenting the 2020-21 budget in the Legislative Assembly, Chief Minister B S Yediyurappa proposed to increase rate of tax on petrol from 32 per cent to 35 per cent and diesel from 21 per cent to 24 per cent, as part of additional resource mobilisation measures.
CM Yediyurappa
Yediyurappa, who also holds the finance portfolio, increased excise duty on Indian Made Liquor (KML) across 18 slabs by six per cent. However, to promote affordable housing, the government proposed to reduce stamp duty on first time registration of new apartments/flats costing less than Rs 20 lakh from existing five per cent to two per cent. (Photo: Reuters)
Karnataka Budget
This is the first budget of the BJP government after coming to power last year; it's the seventh presented by Yediyurappa. "For the year 2020-21, a total amount of Rs 55,732 crore is provided for stimulating economic growth sector", the Chief Minister said. (Photo: PTI)
Revenue collection target
He said the revenue collection target for the Commercial Taxes department for the year 2020-21 is fixed at Rs 82,443 crore. Stating the government had fixed a revenue target of Rs 20,950 crore for the excise department for the year 2019- 20, he said at the end of February Rs 19,701 crore had been collected. "We hope to achieve the budget target." (Photo: Reuters)
Enforcement and regulatory measures
He also hoped with the increase in rates and effective enforcement and regulatory measures, the Excise department would be achieving the target of Rs 22,700 crore fixed for the financial year 2020-21.
Motor vehicle tax
On the transport sector, Yediyurappa said it is proposed to levy motor vehicle tax on contract carriages having seating capacity to carry more than 12 passengers, but not more than 20 passengers at the rate of Rs 900 per seat per quarter. He said it is also proposed to levy vehicle tax on new model sleeper coaches which are granted permits under section 88 (9) of MV Act 1988 at the rate of Rs 4,000 per sleeper per quarter. Noting that a target of Rs 7,100 crore revenue collection is expected to be achieved in 2019-20 in transport sector, he said for 2020-21 revenue collection target has been fixed at Rs 7,115 crore. (Photo: Reuters)
Stamps and registration
He said the revenue collection target for 2019-20 under stamps and registration was fixed at Rs 11,828 crore and against this Rs 10,248 crore has been collected till the end of February 2020 which is 87 per cent of full year target. While the revenue collection target for 2020-21 under stamps and registration is fixed at Rs 12,655 crore. (Photo: Reuters)