K'taka to decide on reducing sales tax on petrol on June 19

Bangalore, Jun (UNI) The Karnataka cabinet, scheduled to meet here on June 19, is likely to decide on reducing Sales Tax imposed on Petrol and Diesel to reduce burden on consumers, Home Minister V S Acharya Said today.

Speaking to newsmen here he said though the burden on the state government due to the increase in the fuel prices would be around Rs 500 crore, the additional tax revenue expected was only Rs 380 crores.

The tax imposed on Aviation turbine Fuel was 28 per cent as against 20 per cent in many states. Similarly the issue price of petrol in the state was Rs 42.75 paise per litre as against Rs 40 in many other states.

Considering all these aspects, the government might reconsider the sales tax imposed on these products at the next cabinet meeting, he explained without specifying the quantum of reduction in prices.

The cabinet was also expected to discuss the price of LPG cylinders, he said.

Dr Acharya said the emergent meeting of the empower committee met at New Delhi under the Chairmanship of Ashish Das Gupta had unanimously resolved to urge the centre to shoulder half of the burden of the states with regard to hiked petroleum prices.

The scheduled meeting of the empower committee would meet at Srinagar on June 21, he added.

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