What Taxes We Pay on Petrol & Diesel
Government’s revenue by VAT and taxes has increased by levying more taxes on petrol and diesel.
1. The Central Excise Duty on petrol increased from Rs 9.48 per liter to a high of Rs 21.48 per liter. In October 2017, the excise duty on petrol was reduced by Rs 2 per liter, the first such reduction by the BJP government.
On the other hand, the duty on diesel increased by more than 4 times from Rs 3.56 per liter to a high Rs 17.33 per liter. Like petrol, the duty was reduced by Rs 2 per liter in October 2017 to Rs 15.33 per liter.
2. The State VAT on petrol is at least 25 percent in 21 states with the highest in Mumbai at 39.54 percent. The State VAT on diesel is more than 20 percent in 14 states and highest of 28.31 percent in Andhra Pradesh.
3. The Central Government revenue from excise duty on petrol & diesel more than tripled between 2013-14 and 2017-18. During the same period, the State Governments revenue through VAT also increased by more than 38 percent.
4. In the Retail Selling Price of Diesel (in Delhi at IOCL as of 3rd September 2018), 36.2 percent is taxes. In other words, for every Rs 100 you pay for diesel, Rs 36.2 goes to the government in the form the taxes if you are in Delhi. The amount of taxes will be different in different states based on the State VAT & other factors.
5. In the Retail Selling Price of Petrol (in Delhi at IOCL as of 3rd September 2018), 45.9 percent is taxes. In other words, for every Rs 100 you pay for petrol, Rs 45.9 goes to the government in the form the taxes if you are in Delhi. The amount of taxes will be different in different states based on the State VAT & other factors.
(This story originally published on Factly and has been republished by The Quint with permission)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)