Presenting the budget in the assembly, Chief Minister B S Yediyurappa announced a 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, who also holds the finance portfolio, increased excise duty on Indian Made Liquor (KML) across 18 slabs by six percent. 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 lakh from existing five per
Karnataka’s share in central taxes has come down by Rs 8,887 crore in 2019-20 as per the revised budget estimates of the central government. Apart from this, Rs 3,000 crore GST compensation will also be reduced as collection from the GST compensation cess is not as expected, the Chief Minister said.
In view of this, there will be a reduction of Rs 11,215 crore in the state’s share of central taxes in 2020-21 budget, when compared to the previous year. “This magnitude of economic difficulties was never faced in the previous years by our state,” he added.