TUMAKURU: Micro, Small and Medium Enterprises in Karnataka have appealed to the State and Centre to cut taxes on fuel prices. Karnataka Small Scale Industries Association (KASSIA) stated that the MSMEs are worst hit by the spiralling price rise, as it increased transport expenses of workers and production cost of factories. It is leading to other complications as workers demand an increase in their salaries to meet their rising commuting cost as most of them use their vehicles for commuting.
Though fuel price increase has reduced their margins, the MSMEs cannot pass on the burden to customers, as many vendors have signed contracts with their purchasers. KASSIA noted that the return of fuel consumption level to pre-Covid times indicates that the economy is on the rebound, and there is no need for the government to delay its decision to reduce the duty on it. The association urged the CM to immediately cut the existing sales tax and the Centre to reduce the excise duty.
Chief Minister Basavaraj Bommai had earlier stated that they will take a call on reducing tax on fuel after the October 30 bypolls. “The industrialists are compromising on profit margins due to increase in petrol and diesel prices. When the Dasara bonus was announced, the workers demanded an increase in the allowance, as the fuel price is increasing day after day. The Centre has to take measures to bring down the fuel prices, “ said Ramesh Hegde, Chairman, Machenahalli Industries Association and former KASSIA member.