In his 2013-14 budget presentation on Friday 12 July 2013 Chief Minister Siddaramaiah proposed to maintain the increased VAT rates of 5.5% and 14.5% beyond 31 July. The rates had previously been scheduled to revert to 5% and 14% on 1 August, however Siddaramaiah said during the presentation that maintaining the higher rates was necessary as the amount raised so far from them has not been sufficient to meet the requirement arising out of waiving crop loans to farmers who suffered from the drought last year.
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