Karnataka Government increases sales tax on diesel, prices rise by Rs 2 per litre

Bengaluru (Karnataka) [India], April 1 : The price of diesel in Karnataka is set to rise by Rs 2 per liter as the state government has increased the sales tax on diesel to 21.17 per cent.
The price hike comes into effect immediately.
According to a government notification issued on Tuesday, the Karnataka Sales Tax (KST) on diesel has been increased from 18.44 per cent to 21.17 per cent.

"In the said notification, against Sl. No. (ii), for the words and figures "eighteen point four four percent (18.44%)", the words and figures "twenty one point one seven percent (21.17%)" shall be substituted," the notification read.
"After the approval of the Competent Authority, the Karnataka Sales Tax rate on diesel has been increased to 21.17%, effective from 01-04-2025. As a result, there will be an increase of 22 per liter, bringing the sale price to 291.02. However, even after this increase, the revised sale price in the state will continue to be lower compared to the neighboring states," it added.
Meanwhile, the Bruhat Bengaluru Mahanagara Palike (BBMP) has introduced a new "garbage cess," making it mandatory for Bengaluru residents to pay a solid waste management user fee starting Tuesday, April 1.
The BBMP has decided to increase door to door waste collection and disposal charges, imposing a monthly 'garbage cess' on various properties.
The new tax will be levied on residential buildings, shops, and hotels, with charges varying based on property size.
As per BBMP, hotels which were previously charged Rs 5 per kg of garbage, will now pay Rs 12 per kg. Similarly, for residential buildings charges are based on area. For buildings up to 600 sq ft a monthly charge of Rs 10 will be collected. While for buildings with area between 600-1,000 sq ft a monthly garbage cell of Rs 50 will be collected. Buildings ranging from 1,000-2,000 sq ft of area, a monthly cess of Rs 100 will be collected, while it has been fixed at Rs 150 per month for buildings with 2,000 - 3,000 sq ft of area. For buildings from 3,000 sq ft to 4,000 sq ft of area, a monthly garbage cess of Rs 200 will be collected, while Rs 400 will be collected per month for buildings with above 4000 sq ft of area.
The garbage cess will be collected annnually along with property tax. The BBMP expects to generate around Rs 600 crore annually through this initiative to boost its revenue.
This move follows recent hikes in milk and electricity prices, adding another financial burden on residents.
On March 27, the Karnataka government announced a Rs 4 per liter increase in the price of Nandini milk and curd, effective April 1. This decision was taken during a Cabinet meeting chaired by Chief Minister Siddaramaiah to support dairy farmers and account for rising milk production and processing costs.
Karnataka Milk Federation (KMF) Chairman Bheema Naik defended the state government's move to increase the price of Nandini milk by Rs 4 per litre, stating that the additional cost would go directly to the farmers.
"We were selling milk in Karnataka at a price lower than that elsewhere in the country. KMF procures 86 lakh-1 crore (milk) every day. 1 litre of milk is sold at Rs 42 (Karnataka). In Gujarat, it is Rs 53, in Andhra & Telangana, it is Rs 58, in Delhi and Maharashtra, it is Rs 56, in Kerala, it is Rs 54. This decision has been taken in the interest of herders. These 4 Rupees are going to farmers," Naik told ANI.