Cabinet decides to reduce ST on Petrol, Diesel, LPG

Bangalore, Jun 19 (UNI) The Karnataka Cabinet today decided to reduce sales tax on petrol, diesel and LPG domestic gas cylinders in the wake of the recent hike in the prices of petro products.

Announcing this here after a Cabinet meeting, Rural Development and Panchayat Raj Minister Shobha Karandlaje said the Cabinet decided to reduce the sales tax on the three products, following an appeal from Prime Minister Manmohan Singh. With this, the price of petrol would come down from Rs 58.55 to Rs 57.15, diesel from Rs 39.80 per litre to Rs 39.15 and LPG cylinder from Rs 358.42 to Rs 348.08.

The state government would be losing Rs 275 crore revenue by reducing tax on these products, she explained.

She said the Cabinet took exception to the 'discrimination' meted out by the Centre to the State by fixing higher base price for these products when compared to the neighbouring states. The meeting decided to take a delegation to the Centre to prevail upon it to treat Karnataka on par with other states in this regard.

Giving details about the other decisions taken in the meeting, Ms Karandlaje said free bicycles would be given to seven lakh boys and girls studying in eighth standard in Government and aided schools across the State. School students falling under the city corporation limits, however, have been excluded from this scheme.

The government would incur an expenditure of Rs 90 crore during the current financial year, with the implementation of the scheme.

It was also decided to provide green - cards to 12 lakh families, who were left out of the below poverty line status, within a month.

She said the Cabinet also ratified the government's decision to appoint Jagannath Shetty Commission to probe the killing of a farmer in Haveri district recently during a protest by farmers against short supply of fertilisers.

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