The JD(S) and Congress coalition government led by chief minister HD Kumaraswamy in Karnataka, has promised to slash taxes on fuel, which will reduce the prices of petrol and diesel by Rs 2.

This comes a week after Andhra Pradesh and West Bengal announced cuts in fuel prices. 

Kumaraswamy has allegedly passed on instructions to the finance department after he was told that this year’s tax collection had exceeded the target.

It was also due to the sales tax levied on petrol and diesel, according to Kumaraswamy's budget announced in July that resulted in a hike in fuel prices in the State.

While initially, the idea was to generate enough revenue to kick start the farm loan waiver scheme, the government can now afford to reduce fuel prices since money for the first quarter towards the waiver has been dispatched. 

A resource review meeting was held with the officials from excise, transport, mines and geology, and commercial taxes departments to discuss the feasibility of this proposal. 

 

“Everyday fuel prices are increasing. People of Karnataka felt that the State government can reduce the prices of fuel by reducing the taxes. I want to announce from Kalaburgi that the coalition government has decided to cut down the taxes for petrol and diesel minimum by 2 rupees. I hope this announcement of the government will give some relief to the people of Karnataka,” announced HD Kumaraswamy.