Cabinet decides to reduce Sales Tax on Petrol, Diesel and LPG

Bangalore, Jun 19 (UNI) Karnataka cabinet today decided to reduce Sales Tax imposed on Petrol, Diesel and LPG domestic gas cylinders in the wake of recent hike in the prices of petro products.

Announcing this to newsmen here after a cabinet meeting, Rural Development and Panchayat Raj Minister Shobha Karandlaje said the cabinet decided to reduce the sales tax component on the three products. 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.

She said the cabinet took exception to the 'discrimination' meted by the Centre to the state by fixing higher base price of these products when compared to 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.

The state government would be losing Rs 275 crore revenue by reducing tax on these products, she explained saying that the cabinet took the decision following appeal from the Prime Minister Manmohan Singh after the recent hike.

Giving details about other decisions taken in the meeting, she said over free bicycles would be given to seven lakh boys and girls studying eighth standard in government and aided schools across the state. Schools coming under city corporations limits however, had been excluded from this scheme. The government would incur an expenditure of Rs 90 crores during the current financial year.

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

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

UNI SR RS HVB1540