Karnataka Hikes Fuel Prices: Middle Class Hit Again?
Days after Karnataka Chief Minister Siddaramaiah held a meeting of various revenue-generating departments, the Congress government has issued a notification hiking sales tax on petrol and diesel in the state. As a result, petrol and diesel prices have gone up by Rs 3 and Rs 3.5, respectively. Lower-income households spend more of their budgets on transportation (and other necessities) than higher earners, according to economists, so this is clearly a problem for the middle class and the poor.
According to official sources, petrol will now go up by Rs. 3 and diesel by Rs. 3.5 per litre. In a notification issued by the Finance Department, the government has hiked sales tax on petrol by 3.92 percentage points, from 25.92 to 29.84 per cent.
