Bengaluru: Apart from substantial tax cuts by the center and country at the price of gasoline and diesel, gasoline in Karnataka continues to direct more than Rs 100 per liter.
According to the state government notices on Thursday, gasoline prices are reduced from Rs 114 on November 3 to Rs 101 (reduction of RS 13.30) while diesel prices are reduced from Rs 104 on November 3 (RS reduction from RS 19.40).
Head of Karnataka Minister Basavaraj Bommai on Wednesday, announcing a reduction in the price of both Rs 7 more fuel, said the price of gasoline and diesel would be Rs 95.50 and Rs 81.50 per liter in Karnataka.
This is because prices are calculated at the old base price associated with crude oil prices fluctuating in the international market and dollar level fluctuations.
“The difference is because the separation was calculated yesterday (Wednesday) was in the basic price on October 20 because the oil market company had not provided the latest figure.
In the last 13 days, there was a revised upward – Rs 4.39 on gasoline and RS 4.09 on Diesel – Basic prices.
Price Basic gasoline increased 40paise yesterday, “said a Ministry of Finance officials.
Tax deductions to increase consumption, revive the economy, said Fkccion Wednesday, the center reduced assignments of Rs 5 and Rs 10 on gasoline and temporary diesel countries on Thursday to reduce the reduction in sales of Karnataka (KST) to 25.92% from 35% more than 35% Beginning on gasoline and 14.34% from 24% on diesel.
Bommai in Hubballi said the government had contemplated reducing prices since the fuel price crossed the RS 100 sign and could lead to the estimated loss of Rs 2,100 Crore to the state.
Greater concern is that the sales tax will continue to increase with an increase in the basic price because the sales tax structure is AD Valorem tax (imposed on the monetary value of the product) unlike central customs, which is constantly regardless of basic price fluctuations.
“Because the trend of the increase in crude oil prices is expected to continue, the basic price will increase, and retail prices will increase.
At this level, the effect of reducing KST is expected to be neutralized in 20 days,” said KM Basave Gowda, President, Association of Dealer Petroleum Akhila Karnataka.
M Govid Rao, economist and former Director of the National Institute of Public Finance and Policy, said: “The specific level of state sales tax on the Central Customs Line seems to be a solution.
The state must agree and the center must build consensus.” “There is a service in the argument that KST Must be constant after intentional at the ministerial level, “said Commissioner of Commercial Tax C Shikha.
“Tax reduction by the center and the state has provided highly needed assistance.
It can increase consumption and help revive the economy after a covid induced lull,” said BT Manohar, chairman of taxation, FKCCI.