Petrol prices, which were hiked by Rs 7.50 last month, is likely to come down by Rs 4 in the state. The relief is likely to be announced soon. The state government has already indicated that it would bring down the sales tax on petrol which is one of the highest in the country. The Union government is expected to bring down petrol prices by Rs 2 in another few days with the global crude oil prices going down. The state government charges over 25 percent sales tax on petrol making it the most expensive in the country. Uttarakhand and Kerala governments waived sales tax on petrol last month, followed by Delhi on Sunday.
Chief Minister D.V. Sadananda Gowda has indicated that the sales tax on petrol will be rolled back soon. Experts suggested that there could be a rollback of around Rs 1.25 in the sales tax in the state. Bangalore Petroleum Dealers’ Association President B.R. Ravindranath said: “Sales tax will be rolled back as the chief minister has already announced it. But we are not sure of the extent of rollback. We anticipate that the price of petrol will be reduced by about Rs 4 as the Union government too plans to reduce petrol price.”
The Bangalore Petroleum Dealers’ Association has also proposed that the government should stop collecting entry tax on diesel as Karnataka is the only state that has imposed it. “If the state government rolls back entry tax by Rs 2, the cost of petro products, including diesel, will be on a par with other states. This will bring more revenue to the state as the sales of diesel will go up. We also requested the state government to stop collection of entry tax on diesel on a pilot basis for six months. According to our study, the government will earn Rs 100 crore more through this. Now, vehicles filling diesel in the state have to pay 5 percent entry tax on diesel which is repelling most of them to other neighboring states,” he said.