Bengaluru, Mar 5 (IANS): Petrol and diesel in Karnataka will cost more from April 1, as the state budget for fiscal 2020-21 has proposed 3 per cent increase in VAT on both the most consumed fuels, Chief Minister B.S. Yediyurappa said on Thursday. He also said that Indian made liquor (IML) will cost more in Karnataka from April 1, as the state budget for fiscal 2020-21 proposed to increase additional excise duty (AED) by 6 per cent per bulk litre or 9 litres of the various brands

"Petrol price will increase by Rs 1.60 per litre and diesel by Rs 1.59 a litre from April 1, as I propose to increase 3 per cent value added tax (VAT) on both the fuels," Yediyurappa said while presenting the state budget for the ensuing fiscal in the state legislative assembly at Vidhana Soudha.

The budget proposes to increase VAT on petrol to 35 per cent from 32 per cent and on diesel to 24 per cent from 21 per cent.

"Even after this increase, the price of petrol and diesel in Karnataka is less in comparison to those prevailing in the neighbouring states," Yediyurappa, who also holds the finance portfolio, told the lawmakers in Kannada.

"I propose to increase the rates of AED 6 per cent per bulk litre of IML across 18 slabs with effect from April 1," said Yediyurappa. 

The 6 per cent increase in the AED will cost the cheapest liquor brand by Rs 9 more per carton box of 12 bottles and the costliest brands by Rs 202 per carton box.

"With effective enforcement and regulatory measures, the state excise department will achieve the target of Rs 22,700 crore fixed for the fiscal year," the chief minister told the lawmakers in Kannada.