The Hindu : Karnataka News : Petroleum retailers to suspend business

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Wednesday, Jun 25, 2008
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Karnataka

Karnataka

Petroleum retailers to suspend business

Staff Correspondent

Reduce sales and entry tax on diesel: association

Bijapur: Members of the Bijapur and Bagalkot District Petroleum Trader’s Association has decided to close down all petrol pumps for a day on Wednesday to pressure the Government to reduce sales and entry tax on diesel in the State, said association secretary K.R. Kullolli.

Speaking to reporters here on Monday, he said sales and entry tax on high speed diesel in the State is higher than rates applicable in the States of Maharashtra, Tamil Nadu, Andhra Pradesh and Kerala.

The Government of Maharashtra reduced the price of diesel in November 2006. In view of this, truckers, who were buying diesel at retail outlets in the border areas of Karnataka, started to purchase the fuel in Maharashtra, he added.

This move has resulted in a drastic reduction in the sales of diesel in bordering districts in Bijapur, Belgaum, Gulbarga and Bidar. The effect is also felt in other parts of the State on the highway leading to Maharashtra.

The overall growth in sales of high speed diesel in the State between April and December 2007 was 3.7 per cent compared to the 13.1 per cent registered during the same period in the previous year, he added.

Due to the fall in sales of high speed diesel in Karnataka, the revenue has been considerably affected. Keeping these facts in view, the State Government should reconsider the rate of taxes being levied on diesel, he said.

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