The state govt has revised sales tax by 29.84% and 18.44%.
Fuel Prices: The prices of petrol and diesel in Karnataka have been increased by the state government effective immediately from Saturday, 15 June 2024.
The increase in prices is a result of an official announcement by the Government of Karnataka, which signifies a change in the sales tax applied to petroleum products.
Petrol prices have risen by Rs 3, making the cost per litre in Bengaluru Rs 102.84, an increase from the earlier rate of Rs 99.84. In a similar vein, diesel prices have gone up by Rs 3.02, taking the cost per litre from Rs 85.93 to Rs 88.95.
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The Petroleum Dealers Association has stated that the increase in prices is due to the state government’s revision of the sales tax, which is applied to petroleum products within the state. The notification indicates that the sales tax on petrol has been raised from 25.92% to 29.84%, and the tax on diesel has been increased from 14.3% to 18.4% by the state government. This significant increase in the sales tax has directly impacted the retail prices of both petrol and diesel across the state.
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The initiative by Karnataka’s Finance Department is designed to increase the state’s revenue. Nevertheless, it may trigger a domino effect across different sectors, such as transportation and goods distribution, which could result in higher expenses for consumers. The sudden enforcement of these new charges has taken many inhabitants and companies off guard, raising alarms about the potential economic strain they may face.
