BENGALURU: The Karnataka government is likely to forgo its share of taxes on diesel for all four state-run road transport corporations (RTCs) to bail them out of their financial problems.
Sources said chief minister Basavaraj Bommai, during a meeting last week, asked finance officials to work out implications for the state exchequer if tax on diesel is waived. The direction came after RTCs expressed concern over rising fuel prices and sought a subsidy. "If at all it comes through, this is going to be a temporary measure till the financial health of these corporations improves," said a transport official.
