[claxtoncorreya]

@sumathindra - Karnataka imposes a 25 % VAT on petrol and additional 5% entry tax. I remember articles and discussions around reducing VAT and removing entry tax following GOA gov's decision to implement the same. Guess it never got implemented. May be petrol tax will get reduced towards the next elections.

[drmohitg]

Originally Posted by sgiitk

Even though the pricing is nominally decontrolled (we all know how true?) it may be skipped due to political compulsions.

Very true. And with the elections coming soon and the allies going away one by one, I doubt there will be many more diesel price hikes too.

[apachelongbow]

Originally Posted by claxtoncorreya

@sumathindra - Karnataka imposes a 25 % VAT on petrol and additional 5% entry tax. I remember articles and discussions around reducing VAT and removing entry tax following GOA gov's decision to implement the same. Guess it never got implemented. May be petrol tax will get reduced towards the next elections.

Can this looting be questioned in court? What value to the tune of 25% is Karnataka government added on fuel imported into the state?

VAT, value added tax by definition is the tax to be claimed by govt, on the value added by the downstream supplier/dealer/manufacturer to a finished good. If a good costs 10Rs at the factory, and the shop keeper adds Rs2 of value by selling it in his store, than the govt claims 12% VAT on Rs2 only.
How come Karnataka is claiming 25% on the price per liter?

[myavu]

Here is an interesting article

http://openchannel.nbcnews.com/_news...bal-order?lite

Cheers!

Vinu

[mjothi]

One more reduction. Are we going back to old price? Is it due to 2014 election?

http://www.firstpost.com/economy/pet...ht-681632.html

[sgiitk]

@mjothi; Do not rejoice for too long. Right now in addition to the reduction in Petrol, there is also a reduction in ATF and LPG amongst others. However, this may not last long since the global proces are showing signs of hardening, and following the 6.7% CAD the rupee may break!

[ghodlur]

Bad news for Thaneites. With the introduction of Local Body tax (LBT) in Thane scrapping the age old Octroi, petrol prices have become dearer by Rs 2/- over the prices in Mumbai. Petrol will cost now Rs 76 and diesel will be sold at Rs 57/- whereas the Mumbai rates are Rs74.14 and 54.87. I guess then its back to old days of refilling in Mumbai.

http://dnasyndication.com/showarticl...VCE7v5fyeNtP48=

[sgiitk]

I think some states are just looting in every way, starting with an Octroi (abolished in most states ages ago), they high VAT and now a local tax. Do these jokers not realise that with GST coming (hopefully soon) the Octroi (a good source of money for the local goondas) and local tax will have to go.

Now the joke of 0.04 reduction in Diesel!!

[rock75]

Originally Posted by apachelongbow

Can this looting be questioned in court? What value to the tune of 25% is Karnataka government added on fuel imported into the state?

VAT, value added tax by definition is the tax to be claimed by govt, on the value added by the downstream supplier/dealer/manufacturer to a finished good. If a good costs 10Rs at the factory, and the shop keeper adds Rs2 of value by selling it in his store, than the govt claims 12% VAT on Rs2 only.
How come Karnataka is claiming 25% on the price per liter?

I agree fully with your point, In Punjab the VAT on petrol is 33%! There is no reason to justify this abnormal tax rate and is partly responsible for the high petrol prices. Petrol is not a snob item but is used by common men driving their scooters and cars to work in absence of a reliable and comfortable public transport network. At max VAT should be capped at 10-12%. Other states should take a leaf out of Goa's book where the VAT on petrol has been abolished leading to a price of Rs 55.57 at current rates

[veedub89]

Prices of petrol set to come down by Rs.1.50. Diesel prices will increase by 40-50 paise.

http://profit.ndtv.com/news/economy/...e-otherstories

[metropolis]

Effective price of petrol in Delhi down by 1.20/- per ltr

http://ibnlive.in.com/news/petrol-pr.../385505-3.html

[sgiitk]

ow with Brent hitting $98-99 another cut should be in the offing around May 01.

[srinath34]

Petrol prices cut by Rs 3 effective midnight. Hope the good times are not shortlived!!

Looks like a clear election stunt.

[rajshenoy]

Originally Posted by srinath34

Petrol prices cut by Rs 3 effective midnight. Hope the good times are not shortlived!!

Looks like a clear election stunt.

My tank is almost dry after a long drive. I would not have got better time to refill

3 rupee reduction would mean 4-4.5rs in a state like karnataka !! its substantial !! So did the crude slide so much within 2-3 weeks ? or its just a strategy just before Karnataka state elections !! Only time will tell.

[srinath34]

Originally Posted by rajshenoy

My tank is almost dry after a long drive. I would not have got better time to refill

3 rupee reduction would mean 4-4.5rs in a state like karnataka !! its substantial !! So did the crude slide so much within 2-3 weeks ? or its just a strategy just before Karnataka state elections !! Only time will tell.

Hi Raj, I saw this news on the local News9 channel so I guess this reduction is Bangalore specific. If its in the tune of Rs 4-4.5 as you said, then its icing on the cake.

But I suspect this to be the election pressure rather than the usual reason of crude slipping down. Just hope it doesn't shoot up after May 5th.