After excise cut on fuels, Siddaramaiah rules out sales tax reduction

Chief Minister Siddaramaiah ruled out cutting sales tax imposed on petrol and diesel, with the Centre announcing a slash in excise duty on these fuels.

Finance Minister Arun Jaitley, in his budget, announced slashing of excise duty on petrol and diesel by Rs 2 per litre.

Replying to queries from reporters, on whether the state government would reciprocate by cutting sales tax, Siddaramaiah said, “The cost of crude oil has come down from $110 per barrel a few years back to $43. The onus of passing on the savings is with the Centre,” Siddaramaiah said.

A sales tax of 30% and 19%, respectively, is levied on petrol and diesel in Karnataka, which is much higher than many states.

He said the budget was silent on the promise of the NDA government of generating two crore jobs per year and housing for all by 2022.

“They have not increased the Income Tax exemption limit, but reduced corporation tax. This proves our stand that the BJP has always been in favour of capitalists”, Siddaramaiah, who also holds the finance portfolio, said.

Chief Minister Siddaramaiah ruled out cutting sales tax imposed on petrol and diesel, with the Centre announcing a slash in excise duty on these fuels.

Finance Minister Arun Jaitley, in his budget, announced slashing of excise duty on petrol and diesel by Rs 2 per litre.

Replying to queries from reporters, on whether the state government would reciprocate by cutting sales tax, Siddaramaiah said, “The cost of crude oil has come down from $110 per barrel a few years back to $43. The onus of passing on the savings is with the Centre,” Siddaramaiah said.

A sales tax of 30% and 19%, respectively, is levied on petrol and diesel in Karnataka, which is much higher than many states.

He said the budget was silent on the promise of the NDA government of generating two crore jobs per year and housing for all by 2022.

“They have not increased the Income Tax exemption limit, but reduced corporation tax. This proves our stand that the BJP has always been in favour of capitalists”, Siddaramaiah, who also holds the finance portfolio, said.

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