Petrol at Rs58/l if Karnataka follows Goa

Goa showed the way and now Rajasthan has reduced VAT on petrol to provide relief to the aam admi from scorching inflation. “Why cannot Karnataka follow suit?” is the question that is being asked. Petrol price in Goa has been reduced by Rs11 with a cut in VAT on petrol.

Union finance minister Pranab Mukherjee has said petrol will be cheaper by Rs15 a litre in the four metros if Goa’s example is followed. For the people of Bangalore, the relief would be even bigger as the tax burden on petrol in Karnataka stands at 30%, next only to Andhra Pradesh’s 33%.

Bangaloreans could buy petrol at Rs58 if Karnataka withdraws VAT on petrol, which is being sold at Rs73.51 per litre. The state has imposed 25% VAT and another 5% entry tax on petrol, said Bhushan Narang, president of Karnataka Federation of Petrol Dealers’ Association.

Rajasthan recently reduced VAT on petrol by 2% in the budget for 2012-13.

Chief minister DV Sadananda Gowda, who presented his maiden budget on March 21, has already ruled out any cut in tax on petrol as he is faced with the task of mobilising additional resources to ensure the implementation of his Rs1 lakh crore budget.