Karnataka Budget 2021: No Reduction in Tax on Petrol, Diesel

“The decision to not levy additional taxes has been made in light of the COVID-19 pandemic,” the CM said.

2 min read
File image of Karnataka Chief Minister BS Yediyurappa.

Karnataka Chief Minister BS Yediyurappa announced during the presentation of the state Budget that the government will not be levying any additional taxes. However, he said that the tax levied on fuel will stay the same. He said this was due to the pandemic, as it affected everyone adversely.

Other announcements during the state Budget include a focus on regional developments. The chief minister announced packages to support small enterprises such as those making food products like pickles, Koppal’s indigenous toys, etc. The budget also focussed on infrastructural developments and women’s welfare.


The Chief Minister, who also holds the finance portfolio, had said that the effect of the COVID-19 pandemic will be evident in the budget. During his speech he said that there will be a shortfall in revenue collection for the present fiscal (for the year ending 31 March, 2021) vis-a-vis the estimates in last year’s budget.

He also added 14 lakh tonnes worth of food grain was grown during the year despite 20 percent of the produce being destroyed due to floods. This is 1.04 lakh more tonnes more than the last financial year.

This is the second time Yediyurappa is presenting a full-fledged Budget in his current term as the Chief Minister and is his eighth budget overall. The opposition legislators from Congress, led by Siddaramaiah, created a ruckus in the House and walked out before the budget presentation.

Yediyurappa, on Friday, had hinted that he will not impose any new taxes in the budget and burden people who are already facing hardship due to an increase in fuel prices. During the pre-budget interaction with the media, the CM said, “Amid the COVID-19 situation, we have to ensure development in all the districts across Karnataka. This time emphasis would be on women empowerment, tourism, agriculture, and irrigation.”

(This story was first published in The News Minute and has been republished with permission)

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