Monday, 18 October 2021

MP charges the highest on petrol in India, Rajasthan Collects on Diesel

MP charges the highest on petrol in India, Rajasthan Collects on Diesel

Hardeep Singh PuriOil Minister informed the Lok Sabha that excise duty collected from diesel was Rs 2,33,296 and from petrol was Rs 1,01,598 during the FY20-21.

Madhya Pradesh collected the highest sales tax or VAT on petrol in-country, while Rajasthan has the highest tax on diesel, Hardeep Singh Puri Oil Minister told Lok Sabha.

Heavily taxed petrol and diesel rates have hit the highest prices in the month. Taxes, both central and state, make up to 55 percent of petrol price and 50 percent on diesel price.

While the central government collects a fixed excise duty of Rs 32.90 a liter on petrol and Rs 31.80 a liter on diesel, states charge an ad valorem rate of VAT that essentially results in per liter tax going up when prices increase and falling when rates go low.

Puri said

"The excise duty and cess collected by Central government from petrol is Rs 1,01,598 cr and tax collected from diesel is Rs 2,33,296 cr during FY20-21.

State governments, he said, collect VAT on the gross amount of the base prices and Central taxes of diesel and petrol.

The lowest VAT tax on petrol and diesel is in Andaman and Nicobar Islands at Rs 4.82 per liter and Rs 4.74 a liter, respectively.

Madhya Pradesh charges Rs 31.55 a liter value-added tax (VAT) on petrol, the highest in the country, while Rajasthan charged Rs 21.82 a liter on diesel, according to Puri's reply.

Rajasthan levies Rs 29.88 a liter VAT on petrol, and Maharashtra charges Rs 29.55.

In diesel, Andhra Pradesh charges Rs 21.78 a liter value-added tax (VAT), Madhya Pradesh charges Rs 21.68, Odisha charges Rs 20.93 Maharashtra charges Rs 20.85 a liter.

The petrol retail selling price is Rs 101.54 per liter in Delhi is Rs 32.90 a liter central excise duty and Rs 23.43 state VAT. In diesel, Rs 31.80 a liter is Central excise duty and Rs 13.14 is state tax in final selling price is 89.87.

Puri said.

"The total excise duty and cess occurrence as a percentage of selling price on diesel and petrol is Rs 32.4 percent and 35.4 percent,as dated on July 16, 2021,"

He said the revenue generated by taxes utilizes the government's various developmental schemes like road-building scheme Pradhan Mantri Gram Sadak Yojana, free LPG connection program PMUY, Ayushman Bharat, and Pradhan Mantri Garib Kalyan Yojana (PMGKY).

He said. It is also

"to provide relief to poor during pandemic by schemes like PMGKAY under which free ration (food) was delivered to 80 crore beneficiaries during April to November 20 and May to June 2021, free vaccination for COVID-19 etc," 

MP Collects the highest on petrol in India Rajasthan Collects on Diesel 1getty image

Read More: Maharashtra joins the global EV100 initiative to boost the industry

Over the last year, the relentless price rise has meant that most states gained on taxes unless they cut levies.

According to Puri's reply, Andhra Pradesh gained the most – Rs 7.59 a liter on petrol and Rs 5.48 on diesel last year.

It was followed by neighboring Telangana that gained Rs 5.77 on petrol and Rs 4.08 on diesel. Madhya Pradesh gained Rs 5.65 a liter on petrol and Rs 3.65 on diesel.

Delhi gained Rs 4.94 a liter on petrol, but because it had cut taxes on diesel, its per liter revenue came down to 5.69.

North-eastern states of Meghalaya, Nagaland, and Assam saw revenue fall per liter.

In total revenue, which is dependent on total sales made in states, Rajasthan saw its (VAT) value-added tax revenue rise by 1,800 cr to 15,119 cr in FY2020-21.

Madhya Pradesh observed a revenue boost by 1,188 cr to 11,908 cr, while Rs 846 cr addition collection took Andhra Pradesh's VAT revenue to 11,014 cr. UP saw revenue rise by 1,844 cr to 21,956 cr in FY21.

Delhi saw its VAT revenue fall by 1,180 cr to 2,653 cr, while Maharastra had its kitty shrunk by 1,361 cr to 25,430 cr.

Tamil Nadu's revenue fell by 1,112 cr to 17,063 cr.

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