Bengaluru, Nov 4 (IANS): Chief Minister Basavaraja Bommai announced to reduce the Karnataka Sales Tax (KST) on petrol and diesel by Rs 7 each as a Diwali gift to the people of the state.
The late Wednesday night decision followed the Central government's announcement of a drop in prices of petrol and diesel.
Welcoming the Centre's move, Bommai said in a tweet that his government's decision to reduce the KST would cost Rs 2,100 crores to the state exchequer.
This price reduction will come into effect from Thursday evening.
In Karnataka, a tax of Rs 59 was levied, consisting of Rs 32.9 in central additional excise duty (AED) and 35 per cent in the state sales tax (on the amount of Rs 41.8) and AED. In total, there will be a reduction of Rs 17 per litre of diesel and Rs 12 for petrol.
Before the cut by the Central government, petrol was sold at Rs 113.93 in Bengaluru and diesel at Rs 104.50.