Karnataka Chief Minister defends fuel price hike

Karnataka Chief Minister Siddaramaiah on Sunday justified the petrol and diesel price hike in the state, highlighting the state's "reduced revenue", and said it would ensure funding for essential public services and development projects.He noted that even after the hike in sales tax on fuels, the prices remain lower than those in many South Indian states and states with similar economies.Siddaramaiah said, “The Government of Karnataka has increased VAT on petrol to 29.84% and on diesel to 18.44%. Even after this hike, our state’s taxes on fuel remain lower than most South Indian states and similar economy-sized states like Maharashtra. In Maharashtra, the VAT on petrol is 25% plus ₹5.12 additional tax, and on diesel, it is 21%. Karnataka’s revised rates are still more affordable.”
Siddaramaiah explained how the central government manipulated VAT adjustments in the past.The state BJP govt kept reducing VAT on petrol and diesel while the Central govt increased its own taxes. This manipulation led to reduced revenue for Karnataka, while the Central government collected more for its coffers, cheating Kannadigas,he added.The chief minister further said that the revised fuel charges will help the state government fund essential public transport. 
Meanwhile, the opposition BJP announced they will protest across the state on Monday against the fuel hike in Karnataka.BJP national spokesperson Shehzad Poonawalla also alleged that the government hiked the tax because they have "bankrupted Karnataka because of their schemes".

(State Correspondent)