Karnataka Chief Minister Basavaraj Bommai on Sunday, May 22, said his government will consider further cut in fuel tax, following the Union government’s decision to reduce excise duty on petrol and diesel. Bommai, last month was non-committal on any further cut in fuel tax by the state government, and had maintained that any decision in this regard will be taken after looking at the economy of the state.
Speaking ahead of his visit to Davos to take part in the World Economic Forum's Annual Meeting, he expressed confidence about attracting more investments into the state. "The decision has come on Saturday night, let's see, we will consider it," Bommai told reporters in response to a query on any decision from the state government to further reduce petrol and diesel rates, following the Union government’s decision.
Bowing to public pressure, Finance Minister Nirmala Sitharaman on Saturday, May 21, announced a Rs 8 per litre cut in excise duty on petrol and Rs 6 a litre on diesel to avoid increase in fuel prices that were necessitated due to surge in international oil prices.
Thanking PM Modi and Sitharaman, the CM in a tweet late Saturday night said, "Price of petrol to reduce by Rs 9.5/litre & diesel by Rs 7/litre.....This measure will be a huge boon to our women folk. Our government is of the people' & for the people'. This is a pro people decision."
In November 2021, the state government had cut sales tax on petrol from 35% to 25.9% and on diesel from 24% to 14.34%, which resulted in petrol price reducing by Rs 13.30 per litre and diesel by Rs 19.47 per litre.
The Chief Minister is leading a delegation from the state to Davos, comprising Industries Minister Murugesh Nirani, Information Technology and Biotechnology (IT/BT) Minister C N Ashwath Narayan and top officials.
Noting that in the quarter ended recently, highest Foreign Direct Investment has flown into India, which is good news, he said, "Karnataka stands number one in that, like the last four quarters during this quarter too Karnataka has received highest FDI, so we are encouraged, several foreign and Indian industries are keen on investing in Karnataka. We are confident of getting a good response during the Global Investors Meet scheduled for November."
This will be Bommai's first overseas trip as the Chief Minister. There was earlier speculation on whether or not he will go.
Bommai's predecessor B S Yediyurappa had attended the Davos summit in January 2020, following which the BJP government in the state had introduced major reforms, including a policy change, by making it easier for investors to purchase land from farmers.