Karnataka govt raises sales tax on diesel, price up by Rs 2 per litre

Karnataka government has hiked the sales tax on diesel to 21.17 per cent with effect from Tuesday, as a result of which there will be an increase of Rs 2 per litre, bringing the sale price to Rs 91.02.

An official statement highlighted that the Karnataka Sales Tax rate on diesel was at 24 per cent prior to November 4, 2021, and the sale price per litre was Rs 92.03. On June 15, 2024, the Karnataka state government issued a notification revising the tax rate on diesel to 18.44 per cent.

"After the approval of the Competent Authority, the Karnataka Sales Tax rate on diesel has been increased to 21.17 per cent, effective from 01-04-2025. As a result, there will be an increase of Rs 2 per litre, bringing the sale price to Rs 91.02," the statement said.

However, even after this increase, the revised sales price in the state will continue to be lower compared to the neighbouring states, it stated.

As on March 31, 2025, the diesel price in Bengaluru is Rs 89.02, whereas in Hosur (Tamil Nadu) it is Rs 94.42, Kasaragod (Kerala) Rs 95.66, Anathapura (Andhra Pradesh) Rs 97.35, Hyderabad (Telangana) Rs 95.70 and Kagal (Maharashtra) Rs 91.07, the statement said.

Criticising the move, Leader of Opposition in the Karnataka Assembly, R Ashoka, accused Siddaramaiah-led Congress government in the state of imposing taxes on items one by one.

He alleged that the state government was increasing prices and "sucking blood of poor and middle class people."  In a post on "X", he said, "This poor @INCKarnaraka government has increased the price of milk, imposed a cess on garbage collection, and now it has suddenly increased the price of diesel by Rs 2 per litre."  "Diesel is the fuel used for transporting goods. Doesn't Siddaramaiah, a self-proclaimed economist, know that if the price of diesel increases, the prices of all essential goods and services, including milk, vegetables, fruits, groceries, taxis, will increase? Bus ticket prices were recently increased without money to pay salaries to transport employees.

"Now there is no doubt that bus ticket prices will be increased again on the pretext of diesel price hike. Siddaramaiah, have you been wondering which items should be taxed and which items should be increased in price?", he added.