Budget: K’taka proposes tax hike on petrol, diesel, IML
Petrol, diesel and Indian Made Liquor (IML) will get costlier as the Karnataka government has proposed higher taxes in the state Budget 2016-17, which focuses on development of agriculture and rural areas as well as the Capital city. The Motor Vehicles Tax has also been raised at different rates to mop up Rs 121 crore.
Presenting the budget in the Assembly, CM Siddarmaiah, who holds the Finance portfolio, also raised the VAT from 14.5 to 20 per cent on aerated and carbonated beverages. Hike in rate of tax on petrol and diesel, additional excise duty across 17 slabs on IML and Motor Vehicles Tax have been proposed.
The budget, Siddaramaiah’s fourth as CM and 11th in his political career, also gave a big thrust to infrastructure development in Bengaluru to address the woes of the country’s IT hub. Tax exemption has been retained on paddy, rice, wheat, pulses and products of rice and wheat for one more year.