Chief Minister Basavaraj Bommai, who also holds the Finance portfolio, on Wednesday was non-committal on reducing the sales tax on fuel after Prime Minister Narendra Modi took potshots at Opposition-ruled States over high petrol prices.
“We will see. We must see our economy also. Based on that we will decide,” Mr. Bommai told the media when he was asked if the State will go for another cut in fuel tax.
In November 2021, the State Government reduced sales tax on petrol from 35% to 25.9% and on diesel from 24% to 14.34%. The decision resulted in petrol price dropping by ₹ 13.30 a litre and diesel by ₹19.47 a litre. At present, a litre of petrol costs ₹111.09 and diesel ₹94.79 in Bengaluru.
“Last November, after the Centre cut excise duty, some States followed suit and it benefited citizens in a cooperative federal setup. It will help if other States reduce tax so that neighbouring States are not affected,” Mr. Bommai said.
Mr. Modi specifically named Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Jharkhand for not reducing excise duty on fuel since last November.
