KARNATAKA: Karnataka, known for its diverse economy and progressive policies, is set to witness significant changes in prices for essential daily commodities. With a focus on enhancing state revenues and ensuring growth, the government has taken measures to increase taxes and prices across various sectors. Starting from August 1, consumers will experience price hikes on a range of goods and services, including vegetables, petrol, milk, hotel and restaurant services, and gas cylinders.

The government's decision to raise the price of milk by Rs. 3 has been met with mixed reactions. While the Karnataka Milk Federation initially proposed a higher increase of Rs. 5 per litre, the government opted for a more moderate rise. This adjustment is expected to take effect from August 1.

Vegetable prices, especially tomatoes, have witnessed a significant surge, with prices reaching an astonishing Rs. 200 per kg. Alongside tomatoes, other vegetables like beans, chillies, and bottle gourds have also experienced substantial price hikes. Interestingly, the government has not intervened in regulating vegetable prices, leaving the market dynamics to determine the costs.

The government's introduction of five guarantee schemes has led to a corresponding 20% increase in excise duty for alcoholic beverages, including whisky, brandy, and Indian-made liquors. This measure aims to enhance state revenue while aligning with the state's development goals.

In addition to commodities, the state government has implemented price adjustments in various sectors. The registration process for land and house purchases is set to become more challenging as prices for these registrations have been raised. This move may impact the real estate market and prospective homebuyers.

To meet the revenue collection target set for the Department of Mines and Geology, house-building materials such as gravel, sand, and granite are expected to see price increases. This may have implications for the construction industry and housing projects in the state.

Motor vehicle taxes have also been revised, with commercial vehicles like taxis, school vans, and buses facing an increase in tax rates. Vehicles priced above Rs. 15 lakh will be subject to a 15% tax hike, while those in the Rs. 10-15 lakh range will see a 9% tax increase. The government anticipates a revenue of Rs. 472 crores from these adjustments.

In response to implementing the Shakti scheme and acquiring additional buses, the Karnataka State Road Transport Corporation (KSRTC) has decided to raise bus fares by Rs. 2 to Rs. 5. These revised fares will be effective from August 1.

While these measures aim to support state finances and development initiatives, they may pose challenges for certain segments of the population. Daily-wage workers, electricians, plumbers, and others in service-based businesses may face difficulties sustaining themselves in the competitive market due to the recent price increases. Reports suggest that these workers are seeking a wage hike to Rs. 1100 per day to cope with rising living costs and maintain their livelihoods.

Commodity Markets: Gold falls Rs.100, silver declines by Rs.300

MCX Commodity: Watch Gold, Silver Price Today