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Home Articles Karnataka Budget 2018: What Gets Costlier For The Public?

Karnataka Budget 2018: What Gets Costlier For The Public?

IndianMoney.com Research Team | Updated On Tuesday, November 13,2018, 06:38 PM

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Karnataka Budget 2018: What Gets Costlier For The Public?

 

 

 

Chief Minister of Karnataka, HD Kumaraswamy, presented his maiden Budget on July 5th 2018. He waived off loans borrowed by farmers from Cooperative and Nationalized Banks, to the tune of Rs 34,000 Crores. The maximum amount would be Rs 2 Lakhs per farmer family on loans up to December 31st 2017.

On Thursday, HD Kumaraswamy announced an additional farm loan waiver of Rs 10,700 Crores, availed from Co-operative Banks. To the joy of farmers, Kumaraswamy announced that all crop loans up to Rs 1 Lakh availed from Co-operative Institutions up to July 10th 2018, would be waived off.

Amidst all this joy, there’s bad news. If you are a drinker, Alcohol in Karnataka is getting more expensive. Getting an alcoholic drink in Karnataka will cost you more. What else is expensive? Let’s find out.

Want to know more on Tax Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

 

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Karnataka Budget 2018: What Gets Costlier For The Public?

 

1. Alcohol gets more expensive

 

The next time you go to the Bar and Restaurant or your Beloved watering hole, be prepared to shell out more on your favorite drink. It would be wise to stick to a glass of red wine and avoid whisky, rum and vodka. CM Kumaraswamy had proposed an additional excise duty of 4% on Indian Made Foreign Liquor. This hike will come into effect from tomorrow. In April, duties were raised by 8% and this takes the total hike on hard liquor to 12%.

If a person in Karnataka drinks Rs 3,000 a month worth of hard liquor, there’s an additional excise duty of 4%. This translates to an additional Rs 120 a month.

 

2. Electricity gets more expensive

 

CM Kumaraswamy has increased the taxation on consumption of electricity from 6% to 9%. This means the tax on the consumption of electricity will increase from 10 Paise a unit to 20 Paise a unit.

If your monthly electricity bill was Rs 500, it will go up by an additional 3%. Your monthly electricity bill will rise by Rs 15. 

 

SEE ALSO: Budget 2018: What Will It Have For Farmers?

 

3. Petrol and Diesel get expensive

 

This is what Kumaraswamy has to say on Petrol and Diesel in the State. Tax on Petrol has been increased from 30% to 32% and diesel from 19% to 21%. The price of petrol has gone up by Rs 1.14 a litre and diesel by Rs 1.12 a Litre. This is bound to send prices of petrol in Karnataka northwards.

Petrol prices have gone up by Rs 1.14 Litres. If you use 100 Litres of Petrol a month, your petrol bill will go up by Rs 114 a month.

 

4. Motor Vehicle Tax goes up

 

The Karnataka Government has raised the motor vehicle tax on Private Service Providers. This is an increase of 50% on motor vehicle tax for omni buses and private sector vehicles which are under a lease agreement with industrial undertakings.

These taxes are generally set depending on the square meter area of the floor of the vehicle. The current rates are Rs 1,100 (this is for a floor area up to 6 sq meters), Rs 1,200 (this is for a floor area up to 9 sq meters), Rs 1,300 (this is for a floor area up to 12 sq meters) and Rs 1,500 (this is for a floor area above 12 sq meters). After the 50% hike on motor vehicle tax, the new rates will be Rs 1,650, Rs 1,800, Rs 1,950 and Rs 2,250. The new rates will come into effect from August 1st 2018.

See Also: BBMP Property Tax

What does the hike in motor vehicle tax mean? Omni Buses and Private Sector Vehicles are taken on lease by Companies and Industrial Undertakings and are used to transport employees from their homes to the office. The tax on private buses would raise the transportation costs for IT Firms, Manufacturing Industries and the Service Industry.

Be Wise, Get Rich.

 

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