The Hindu : Karnataka / Bangalore News : `Bring down sales tax on diesel'

Online edition of India's National Newspaper
Monday, Feb 19, 2007
ePaper


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Karnataka

Karnataka - Bangalore

`Bring down sales tax on diesel'

Staff Reporter

BANGALORE: The Federation of Karnataka Lorry Owners and Agents Association has demanded equal pricing of diesel with neighbouring States and warned of an agitation if the Government does not bring down the sales tax component on the fuel immediately.

Federation president G.R. Shanmugappa and secretary B.V. Narayanappa said diesel price in the State was the highest in the country. While it was Rs. 33.22 in Chennai, it was Rs. 34.02 in Solapur in Maharashtra and Rs. 35.27 in Bangalore.

Though the tax component on diesel was high in Karnataka, the Government stands to lose revenue as truck operators prefer to fill the fuel out of Karnataka, the federation noted. The five per cent entry tax has been the reason for high tax incidence in the State. The federation warned of a dharna in front of the residence of Deputy Chief Minister B.S. Yediyurappa if the tax incidence was not reduced immediately.

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Karnataka