Bengaluru: The BJP government in Karnataka has proposed additional taxes on petrol, diesel and liquor from April 1 to meet the shortfall in income. The rate of tax on petrol and diesel were increased by three per cent making the fuel dearer by Rs 1.60 and Rs 1.59 per litre respectively. Presenting the budget in the assembly, Chief Minister BS Yediyurappa, who also holds the finance portfolio, announced tax on petrol would be increased from 32 per cent to 35 per cent and diesel from 21 per cent to 24 per cent.
Yediyurappa also increased excise duty on Indian made foreign liquor by six per cent. However, to promote affordable housing, the government proposed to reduce stamp duty on first time registration of new apartments/flats costing less than Rs 20,00,000 from existing five per cent to two per cent. This is the first budget of the BJP government after coming to power last year and the seventh presented by Yediyurappa.
"For the year 2020-21, a total amount of £5.57 billion is provided for stimulating economic growth sector", the CM said. A new industrial policy would be implemented to attract capital investment, keeping in view the comprehensive industrial development of the state, especially for the backward areas, tier-2, and tier-3 cities.
"Priority will be given to those sectors providing greater opportunities in innovative technology and employment generation", the Chief Minister said. Rules would be framed by amending the relevant acts to encourage the investors and to enable them to purchase land directly from the land owners at the place identified for the establishment of industrial units.
Recognising the importance of Bengaluru as the key driver of the state's economy, Yediyurappa mooted proposals to ease the notorious traffic congestion of the city by promoting the public transport system. A comprehensive mobility programme for Bengaluru is prepared for the first time, he said.
Infrastructure facilities, transit-based development, and essential regulatory measures will be taken up with the objective of increasing the utilisation of public transport from 48 per cent to 73 per cent, Yediyurappa said. He said that Karnataka is facing unprecedented economic difficulties following an £888.7 million reduction in the state's share in central taxes, cut in allocation under 15th finance commission and a £300 million hit in GST compensation.
The Chief Minister said, the state government is committed to the "speedy continuation" of the much anticipated Mahadayi Project, which is very helpful for the people and farmers of the North Karnataka region.
