FKCCI demands reduction in ST on petrol, diesel

Bangalore, June 14 (UNI) The Federation of Karnataka Chambers of Commerce and Industry today appealed to the Karnataka Government to immediately provide sales tax relief to the consumers in the wake of the recent oil price hike.

While most of the states have provided sales tax relief, it was of utmost concern that the Karnataka Government had been silent on the matter, FKCCI President S Babu said in a release here.

The June 5 hike in petrol and diesel prices would increase the cost of movement of people and transporting raw materials and goods and would result in a cascading effect on the prices of commodities, pushing up the inflation rate, he said. High crude prices in the international market also have a bearing on the trade deficit, Mr Babu said, adding that ''according to our estimates, a five dollar per barrel rise in crude oil prices in the international market reduces India's GDP by 0.5 per cent.

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