Karnataka CM Siddaramaiah blames Centre’s GST ‘monopoly’ for increase in fuel price

BENGALURU: CM Siddaramaiah Monday yet again defended the recent fuel price hike in Karnataka, claiming that the increase was necessary to address the shortfall in funds from the Centre and to align the state’s fuel prices with those of the neighbouring states.
“Since the Union govt has monopolised GST, tax collection by states has become limited. Had the central govt allowed states to have their share of taxes, the need to raise fuel prices wouldn’t have arisen,” the CM said while addressing a press conference.
He said the state govt is expected to collect an additional Rs 3,000 crore from the recent tax hike on petrol and diesel, which would be spent on welfare programmes and other development works.
His justification came after opposition BJP held a state-wide protest, demanding a rollback of the new prices that came into effect Saturday.
After the Centre introduced GST, state govts “lost the power” to increase taxes except on fuel, liquor, stamp duty and motor vehicles, he further reasoned. “This nominal increase will not burden the people, as even after the hike, fuel prices in Karnataka are much lower than in many other states, including those governed by the BJP,” he said.
BJP is anti-poor, anti-people: CM
Taking potshots at state BJP functionaries for protesting the fuel price hike, the CM said after Narendra Modi took over as PM, central excise duty on petrol increased from Rs 9.48 per litre in 2014 to Rs 32.98 in 2020, while the duty on diesel has gone up from Rs 3.55 to Rs 31.83. This, despite a significant drop in crude oil prices in the international market.

“So why did the BJP leaders not protest such a substantial increase in fuel prices then? This shows it is antipoor as well as anti-people,” Siddaramaiah alleged.
The CM further said the BJP-led NDA govt at the Centre did injustice to Karnataka by denying the state its share of central funds and GST devolution, and by not releasing funds for state projects. He dared the BJP to hold protests over these issues.