No tax or duty hikes in Karnataka budget for 2021-22
Bengaluru, March 8, 2021
The Karnataka budget for fiscal 2021-22 has not proposed increase in sales tax on petrol and diesel or excise duty on liquor or in registration fee on transport vehicles, said Chief Minister B. S. Yediyurappa on Monday.
"As the Covid pandemic has caused untold miseries to the people in the year 2020-21, I am not willing to put burden of additional taxes on them. No taxes, including sales tax on petrol or diesel has been increased for the year 2021-22," said Yediyurappa while presenting the state Budget for the ensuing fiscal in the legislative assembly.
Yediyurappa, who also holds the finance portfolio, said that though sales tax on petrol and diesel in the state was lesser compared to other southern states, he was not increasing the tax on fuels.
"The Budget has been formulated in such a way so as not to increase the burden on the common man," said Yediyurappa in Kannada while presenting his 8th budget during his tenure as Chief Minster.
The Budget has also not increased excise duty on Indian made foreign liquor or beer for the ensuing fiscal.
"The revenue target from excise duty on liquor and beer has been fixed at Rs 24,580 crore for the ensuing fiscal (2021-22).
The state Excise Department has collected Rs 20,900 crore till February as against the fixed target of Rs 22,700 crore for the current fiscal (2020-21).
With no increase in registration fee on transport vehicles, the budget has set Rs 7,515 crore target for 2021-22.
"The state transport department has collected Rs 4,294 crore till February as against the annual target of Rs 7,115 crore for this fiscal (2020-21)," said the Chief Minister amid boycott and walkout by opposition Congress members.
The state Budget has, however, reduced stamp duty on apartments priced Rs 35-45 lakh to 3 per cent from 5 per cent.
"To promote affordable housing, the stamp duty for registering apartments valued Rs 35-45 lakh is proposed to be reduced to 3 per cent from 5 per cent for fiscal 2021-22," said Yediyurappa on the occasion.
The Budget has set Rs 12,655-crore target for the coming fiscal (2021-22) from the state stamps and registrations department.
"The department has collected Rs 9,014-crore from stamps and registrations till February from across the state as against the annual target of Rs 12,655 crore for this fiscal (2020-21)," said Yediyurappa.
The Budget has reduced the revenue target from commercial taxes to Rs 76,473 crore for fiscal 2021-22 from Rs 82,443 crore set for fiscal 2020-21.
"The state commercial taxes department has collected Rs 71,833 crore till February as against the annual target of Rs 82,443 crore," said Yediyurappa.
The Chief Minister also told the lawmakers that Karnataka was second in the country in overall Goods and Services tax (GST) collection despite the Covid pandemic fallout in 2020-21.