Siddaramaiah Defends Fuel Tax Hike, Counters BJP Criticism

17 June
News Flash
Reported: Vishal Mayur

Fuel Tax Revenue Allocated Strictly to State Welfare Programs, Asserts Siddaramaiah

Bengaluru : Chief Minister Siddaramaiah defended the hike in petrol and diesel taxes, citing statistics to demonstrate that despite the increase, fuel prices in Karnataka remain lower compared to BJP-ruled states and other southern states. Addressing the press at the Home Office Krishna on Monday, Siddaramaiah attributed the necessity of the tax hike to central government policies and unpaid state shares.

Siddaramaiah criticized the Modi government for raising fuel prices since 2015, despite global oil price reductions. He stated the Rs 3,000 crore from the VAT increase on petrol and diesel would fund state welfare programs, refuting allegations of funds mismanagement.

He accused the previous BJP administration of misappropriating public funds, alleging that 40% of state scheme funds were siphoned into BJP leaders' pockets, totaling approximately Rs 1.5 lakh crore. He questioned the moral authority of BJP to protest against the marginal tax increase meant for public welfare.

He highlighted Karnataka's Rs 60,000 crore spending on guarantee schemes benefiting all sections, contrasting it with the Rs 3,000 crore revenue from the fuel tax hike. He brushed off criticism from opposition leader R. Ashok, accusing the BJP of misunderstanding the state's economic strategies and priorities.

He criticized the impact of GST on state finances, highlighting reduced autonomy in tax collection under central government policies. He defended Karnataka's modest tax increase, arguing that local fuel prices remain competitive. He accused the BJP of neglecting Karnataka's interests, citing instances of withheld funds and grants. Siddaramaiah also criticized the BJP for alleged anti-poor and anti-Dalit stances, questioning their stance on economic stability and state development issues.

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