Bengaluru, Apr 2 (UNI) The Karnataka government has increased the sales tax rate from 18.44% to 21.17%, with immediate effect, in a move that is likely related to petroleum products such as diesel and petrol. The decision was announced through an official notification issued on Wednesday by the state's Finance Department.

The notification, issued under Section 8-A of the Karnataka Sales Tax Act, 1957, suggests that the tax increase applies to fuel taxation, as this section typically governs levies on petroleum products. However, the government has not explicitly confirmed which specific products are affected.

The change is part of an amendment to a previous order issued in June 2024. The notification, signed by HR Lalitha, Under Secretary to the Government, states that the revised tax rate applies with immediate effect.

This increase in sales tax is expected to impact transportation costs, leading to higher prices for essential goods and services across Karnataka. Diesel, being the primary fuel for commercial vehicles, may see a price hike, which could result in increased freight charges and a ripple effect on inflation. Petrol prices may also rise, affecting daily commuters.

While the government has not yet provided an official clarification on the scope of the tax increase, industry experts believe it is aimed at boosting state revenue. Further details are awaited from government representatives.

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