Bangalore: The Karnataka Government has proposed to increase steeply sales tax on computer hardware, software, electronic goods and software services.

The tax rates have jumped to 12 per cent from the existing five per cent on computer software (including works contract of programming and providing computer software), hardware, peripherals and cleaning kits.

Other items where the Finance Minister Sidharamaiah plans to raise more revenue by increasing taxes include, electronic integrated circuits and micro assemblies, optical fibre cables; optical fibre and optical fibre bundles and cables; liquid crystal devices and flat panel display devices, besides electronic goods and tools sold to registered dealers.

The IT related products and services have seen a sharp increase in tax rates, up by seven per cent, in about 26 commodities that have seen jump in tax rates in the Budget proposals presented in the Assembly today.

Diesel, non-PDS kerosene, unbranded coconut oil sold in small containers, cement, molasses, opium, Ganja, bhang and other narcotics, computer consumables, kitchenware, vanaspathi and cigarette filters are others which attracted higher tax rates.