He, however, refused to indicate whether the government was contemplating slashing sales tax on the quantum of recent hike in fuel prices or entry tax. "The cabinet will take a decision", he said.
The prices of petrol and diesel in Karnataka was the highest in the country for the sole reason that the basic price was itself high, he told reporters here.
The basic price of petrol is Rs 42.75 per litre compared to the prices ranging between Rs 40 to Rs 41.35 in other states. A decision on reducing taxes will have to be taken after taking into consideration several aspects including revenue loss as Rs 170 crore loss will be suffered by state run transport corporation and Rs 40 crore cost was involved in Government fleet, he said.
From the recent hike, the state coffers would be richer by Rs 380 crore in taxes, he said.
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On Aviation Turbine Fuel (ATF), he said the state has asked the Centre to bring the commodity under VAT at four per cent tax rate throughout the country. Currently ATF attracted 28 per cent tax in Karnataka.