BJP accuses Karnataka govt of ₹6,000 crore petrol VAT windfall, misleading public

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BJP accuses Karnataka govt of ₹6,000 crore petrol VAT windfall, misleading public

Synopsis

BJP's R. Ashoka has put a ₹6,000 crore figure on what he calls Karnataka's stealth fuel tax — alleging the Congress government pockets ₹1.15 extra per litre while staging protests against the Centre. With petrol at ₹107.70 in Karnataka versus ₹99-odd in BJP-ruled states, the charge reframes the fuel-price debate as a state-level accountability question.

Key Takeaways

Ashoka alleged on Monday that the Karnataka government earns an additional ₹6,000 crore annually through a petrol VAT hike.
Petrol is priced at ₹107.70 per litre in Karnataka, against ₹99.50 in Delhi , ₹99.10 in Gujarat , and ₹99.70 in Haryana , according to Ashoka.
He alleged the state earns an extra ₹1.15 per litre from petrol sales, used to fund guarantee schemes.
Ashoka demanded the resignation of Home Minister G.
Parameshwara over communal tensions in Aland and Bhatkal .
He also alleged ration cards are being cancelled and rice procurement funds withheld despite stock available until June .

Leader of Opposition in the Karnataka Assembly, R. Ashoka, on Monday accused the Congress-led Karnataka government of collecting an additional ₹6,000 crore annually through a hike in petrol Value Added Tax (VAT), while deflecting public anger toward the Centre over rising fuel prices. Ashoka made the allegations at a press conference in Bengaluru, calling the state government's posture 'a betrayal of the people.'

The VAT Allegation

Ashoka claimed the Karnataka government had hiked VAT on petrol, earning an extra ₹1.15 per litre from every sale — revenue he alleged was being channelled into funding the state's guarantee schemes rather than passed on as relief to consumers. He argued that if the government genuinely wanted to ease the burden on citizens, it should cut state-level taxes rather than organise protests against central fuel pricing.

'If the government genuinely wants to help people, it should reduce state taxes. Otherwise, it should openly admit that it is collecting additional revenue from the public,' Ashoka said.

Petrol Price Comparison Across States

To substantiate his charge, Ashoka cited cross-state price data. According to him, petrol in Karnataka is priced at ₹107.70 per litre, compared to approximately ₹99.50 in Delhi and Uttar Pradesh, ₹99.10 in Gujarat, and ₹99.70 in Haryana. He attributed the differential primarily to the state VAT hike. NationPress could not independently verify these figures at the time of publication.

Law and Order and Communal Tensions

Ashoka also raised concerns about communal tensions in the state, alleging that the Karnataka government had withdrawn cases against accused persons in the Aland communal violence matter. He claimed such decisions were emboldening extremist elements. Separately, he referred to recent tensions in Bhatkal following the demolition of a religious structure, demanding strict action against those responsible.

He called for an impartial investigation into both incidents and demanded the resignation of Karnataka Home Minister G. Parameshwara, holding him morally responsible for the deteriorating law and order situation.

Financial Governance Under Fire

On the state's fiscal health, Ashoka accused Chief Minister Siddaramaiah of presiding over a government that had raised taxes on multiple items — including a new garbage tax — while continuing to borrow heavily. He alleged the state treasury was under severe strain and that ration cards were being cancelled to reduce expenditure on guarantee schemes.

He also alleged that the state government had failed to release funds required for rice procurement from the Centre, despite adequate stock being available until June.

Electoral Rolls and Bhatkal Drowning Tragedy

Defending the Special Intensive Revision (SIR) of electoral rolls, Ashoka said the exercise would help identify illegal Bangladeshi residents and ensure only genuine voters remained on the rolls. On the recent tragedy in Bhatkal — in which several people drowned while collecting shellfish — he called on authorities to provide proper safety guidance to those venturing into rivers and coastal areas for such activities.

The Karnataka government has not yet issued a formal response to Ashoka's allegations. With assembly sessions approaching and guarantee-scheme funding under scrutiny, the fiscal and communal flashpoints he raised are likely to intensify political debate in the weeks ahead.

Point of View

000 crore charge is politically sharp but requires scrutiny — VAT structures vary by state and the revenue figure has not been independently audited. What the comparison does expose is a real price gap between Karnataka and BJP-governed states, which the Congress will struggle to explain away with Centre-bashing alone. The bundling of fuel taxes, communal tensions, ration-card cancellations, and electoral-roll revision into one press conference suggests the BJP is building a composite governance-failure narrative ahead of a likely political season — rather than targeting any single issue on its merits. The demand for Parameshwara's resignation, absent a formal inquiry finding, reads more as pressure politics than accountability.
NationPress
6 Aug 2026

Frequently Asked Questions

What is the BJP's allegation against the Karnataka government on petrol VAT?
The BJP alleges that the Karnataka government hiked VAT on petrol and is earning an additional ₹6,000 crore annually from the move, while blaming the Centre for high fuel prices. Leader of Opposition R. Ashoka claimed the state collects ₹1.15 extra per litre and uses that revenue to fund its guarantee schemes.
How does Karnataka's petrol price compare to other states?
According to R. Ashoka, petrol costs ₹107.70 per litre in Karnataka, compared to around ₹99.50 in Delhi and Uttar Pradesh, ₹99.10 in Gujarat, and ₹99.70 in Haryana. He attributed the higher price primarily to the state government's VAT hike, though these figures have not been independently verified.
Why did BJP demand Home Minister G. Parameshwara's resignation?
BJP's R. Ashoka demanded Karnataka Home Minister G. Parameshwara's resignation, holding him morally responsible for the state's law and order situation. Ashoka cited the alleged withdrawal of cases in the Aland communal violence matter and tensions in Bhatkal following the demolition of a religious structure.
What other financial allegations did BJP make against the Siddaramaiah government?
Ashoka alleged that the Siddaramaiah government has raised taxes on multiple items including a new garbage tax, borrowed heavily, cancelled ration cards to cut guarantee-scheme costs, and failed to release funds for rice procurement from the Centre despite adequate stock available until June.
What is the Special Intensive Revision (SIR) of electoral rolls?
The Special Intensive Revision (SIR) is an exercise to update and clean up voter rolls. Ashoka defended it, claiming it would help identify illegal Bangladeshi residents and ensure only genuine voters are listed — a position contested by opposition groups who see the exercise as targeted.
Nation Press
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