Bengaluru: On Tuesday, the state government hiked price of the milk and this hike is the latest in a series of financial strains from the Congress Government in Karnataka.
The cost of everyday essentials like milk, electricity, commuting, housing, and even luxury items like liquor have all seen significant hikes. Here’s a detailed breakdown of the increased costs affecting the state, as reported by TOI.
Petrol & Diesel
On June 8, 2024, petrol and diesel prices increased by Rs 3 per litre due to a sales tax hike on fuels. This move was intended to fund welfare and developmental schemes but has significantly impacted those reliant on private transport, especially given the inadequate public transport coverage.
Excise Duty on Liquor
The state budget in July 2023 introduced a 20% hike in excise duty on IMFL (Indian Made Foreign Liquor) and a 10% increase on beer.
Electricity Tariff
In June 2023, a new power tariff of Rs 2.89 per unit was implemented shortly after the new government took office. CM Siddaramaiah attributed the rise to the previous BJP-led government but assured that it would be offset by the Gruha Jyothi scheme, providing free power up to 200 units.
Transport Cess on Commercial Vehicles
In the 2023-24 budget, Siddaramaiah led government announced a 3% hike in transport cess on newly registered commercial transport vehicles, including cabs and auto rickshaws.
Guidance Value of Properties
In October 2023, the guidance value of properties saw an increase of 25-30%, aimed at generating Rs 2,000 crore in revenue.
Lifetime Tax on EVs
A new 10% lifetime tax was introduced on electric vehicles costing above Rs 25 lakh, eliminating the previous exemptions for EVs.
Stamp Duty & Registration
Stamp duty for various legal documents, such as adoptions, rental agreements, divorce papers, enrolment certificates, bank guarantees, mortgage deeds, and limited liability partnerships, increased by 2-6 times.
Seed Prices
Ahead of the May-June sowing season, seed prices surged by 50-60%, posing an additional challenge for farmers still reeling from last year’s drought. There was massive outrage over the price hike of the sowing seeds. Siddaramaiah defend the hike attributing it to low output of sowing seeds due to previous years drought.
Nandini Milk
Milk prices saw a Rs 2 hike for both 500 ml and 1000 ml sachets. The government claims this 4-10% price increase will be balanced by a 5-10% rise in the quantity of milk.
The Congress government continues to highlight how its five guarantees have benefited over 1.2 crore families, with many households saving Rs 8,000-10,000 monthly. However, these savings are overshadowed by the widespread increases in taxes, fees, and prices affecting farmers, laborers, and even the affluent.