[vikramv1]

I think VAT in Mumbai will be slightly more than 15/litre. But the biggest question is how will states compensate this massive revenue loss. The revenue loss in Goa was 100 Crores. In states like Karnataka and Maharashtra, it will be a few thousand crores. I doubt the goverments will be afford this cut and afford a deeper fiscal deficit in the state.

[ghodlur]

Originally Posted by amtak

Wonderful news! I hope this happens in Mumbai too! Any idea what is the percentage of VAT in Mumbai?

Dont know about the VAT percentage but the total taxes on the petrol comes to around Rs 15/- very much similar to what B'loreans pay.

Going OT - Why is the conveyance allowance exemption limit of Rs 9600/- untouched for the past 5+ yrs. Not a single budget speaks of any changes whereas the petrol prices have surely tripled in the past years or so.

[gkrishn]

Petrol prices in Karnataka might get cheaper by Rs 15.5 per litre as the government is likely to withdraw the VAT on petrol.

pure speculation.
oneindia news needs to be taken with truck load of salt.

[govigov]

Ha! Fat chance this going to be a reality. Especially for a huge state like karnataka with multiple entry points with AP/TN/KL/MH/GA. I dont ever foresee this happening.

[mpksuhas]

Well, as many said too good to be true. More so since this news didnt come in any other news website / news paper. Would say oneindia got lots of hits just due to this speculative news. Also, budget is already presented in assembly I guess, no mention about this apart from the slight tax decrease for diesel.

[FasterPhene]

Hope this news is true and not just a rumor to generate good will and support. For the first time I will say I am happy that one state is aping the other states policies.

[chandan]

Can't trust the source here. Reducing by Rs.15/litre is too much a burden on the state govt. Even if this happens, it'll be offset somewhere else.

[SkyWalker]

I would say its still good to have a rumor. Thats how expectations grow

I am sure there is a little pressure on Karnataka to reduce the taxes, and on most governments to follow Goa example. If Karnataka reduces the VAT, then more states will follow suits and the uneven pricing between petrol and diesel will be at least a little better.

[m8002?]

Even it not eliminating the whole VAT, i would be happy if they reduce it to bring it on par with TN and Kerala.

[rajshenoy]

Forget about withdrawing, i wont believe it even if they reduce the tax on petrol. Karnataka does have one of the highest tax on fuel. Even if they do it, it might be when next elections are due, not so soon.

Having said that, i too wish this happens sooner

[wilful]

Yes - seeing is believing I guess. If it does happen, the politician and bureaucrat will find other ways to pinch.
On a lighter note - better this than giving away free tvs and stuff.

[Sowmya]

Same Kind of article in various other site.
Petrol at Rs58/l if Karnataka follows Goa - Bangalore - DNA

Petrol could cost Rs 15 less if Delhi follows Goa's lead - Times Of India

Probably GOVT can makeover this lose in other way, by keeping tight eyes on the Contractor

[lohithrao]

Why should we worry about government, even they put 100% tax they will still be crying of facing loses! we all know why!

I really hope they reduce the price!

[Visaster]

The news is not true. It is a way to get their news selling. We should get some media policing to control these phony news published.
Its impossible to run the corrupt country India without these taxes.
How will the nethas fill their pockets if they give away all the products at actual prices (which is very much possible).

No chance the petrol prices are going to come down in bigger states.
Its an achievable change is smaller corrupt states like Goa but not any other bigger state.

[safari_lover]

I am not sure if this authentic. I read in one of the news papers that the CM has denied any reduction in VAT on petrol.