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Liquor, tobacco and petrol/ diesel will cost more in Karnataka.
Presenting his tenth budget for the state on Friday, Karnataka Chief Minister Siddaramaiah said, “I propose to increase the rate of additional excise duty by 6 per cent to 20 per cent across all the 17 slabs.”
“With this and with effective enforcement and regulatory measures the excise department will be achieving the target of Rs 15,200 crore fixed for the financial year 2015-16,” he added.
Tobacco
With the objective of discouraging the use of tobacco products and at the same time preventing illegal trade diversion, Value Added Tax (VAT) on cigarettes, cigars, gutkha and other manufactured tobacco products has been raised from the present 17 per cent to 20 per cent.
Petrol/ diesel
Siddaramaiah said during the last six months there has been a steady fall in crude oil prices in the international market and the benefits have been passed on to consumers. This had a significant impact on the State’s revenue collection as tax is levied ad valorem.
“But, the State restrained itself from interfering with the tax rates on diesel and petrol though several States, including a few neighbouring states, increased the rates to safeguard tax revenues. The Government of India has raised excise duty on petrol and diesel on four occasions. I, now propose to increase the tax rate on diesel and petrol by a modest 1 per cent keeping in view the need for resources for the larger interest of the society.”
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