PTI
 
Bangalore, June 19: The tax on petrol was reduced by three per cent, that of diesel by two per cent, while VAT on LPG was brought down from four per cent to one per cent.

The Karnataka government today reduced sales tax on petrol and diesel and Value Added Tax on LPG to cushion consumers from the recent fuel price hike.

The tax on petrol was reduced by three per cent, that of diesel by two per cent, while VAT on LPG was brought down from four per cent to one per cent.
 
 
The new prices will come into effect from tomorrow, Minister for Rural Development and Panchayati Raj Shoba Karandlaje told reporters after a cabinet meeting.

Consequently, prices of petrol will come down by Rs 1.35 from the existing rate of Rs 58.50 per litre. Diesel prices will be down by 65 paise from Rs 39.80 per litre. LPG will see a reduction by Rs 10.34 per cylinder from Rs 358.42.

The new petrol price will be Rs 57.15 per litre. Diesel will now cost Rs 39.15 and LPG Rs 348.08.

The new prices will mean a loss of Rs 275 crore revenue annually to the government exchequer, the minister said.

Several states have already reduced the taxes on petrol, diesel and LPG to minimise the burden of the price hike on consumers.