Tax on Petrol-Diesel in India: Oil prices in India are currently sky high. Be it petrol or diesel…their rates have spoiled the budget of the people. But the governments have earned a lot from the tax coming through it. Talking about the last eight years, the central government received more than Rs 18 lakh crore (Rs 18,23,315 lakh crore) from tax on petrol and diesel during this period, while the states got more than Rs 14 lakh crore (1426048) during the same period. lakh crore rupees). Figures show that since 2015-16, the income of the Center has been more than the states every year.
How much tax on petroleum?: In fact, recently Prime Minister Narendra Modi also talked about the issue of oil during a review meeting on Corona with all the Chief Ministers. During this, he appealed to non-BJP ruled states including West Bengal and Kerala to reduce VAT on petrol and diesel. This request of Modi brought a boil in the oil game.
How much tax per liter of petrol/diesel?,
Congress MP Rahul Gandhi also drew attention to the share of the Center and the states in the tax on petroleum by tweeting, where the burden of tax seems to be tilted towards the central government. Before we mention this tax collision, let us first understand what is the base price of petrol and diesel that you get and the calculation of tax.
petrol | diesel | |
base price | 56.32 | 57.94 |
shipping charge | 0.2 | 0.22 |
excise duty | 27.9 | 21.8 |
dealer commission | 3.86 | 2.59 |
VAT | 17.13 | 14.12 |
final retail price | 105.41 | 96.67 |
Whose tax how much?: Going a step further to understand the tax game on oil in more detail, let us now know how much central and state governments earn every year by taxing petroleum products:
Whose Earning?:
financial year | central excise | State VAT/Sales Tax |
2014-15 | 99068 | 137157 |
2015-16 | 178477 | 142807 |
2016-17 | 242691 | 166414 |
2017-18 | 229716 | 185850 |
2018-19 | 214369 | 201265 |
2019-20 | 223057 | 200493 |
2020-21 | 372970 | 202937 |
2021-22 | 262967 | 189125 |
* Prices in crores of rupees
*Source- PPAC
How much tax in which state?: Now that the matter has come to an end, let us also understand through this map what percentage of tax has to be paid on petrol in which state.
petrol: Tax per 100 rupees
Ladakh- 44.60
J&K-45.90
Himachal – 44.40
Punjab- 44.60
Haryana- 45.10
Rajasthan- 50.80
Delhi- 45.30
Uttarakhand- 44.10
Uttar Pradesh- 45.20
Gujarat- 44.50
Madhya Pradesh – 50.60
Chhattisgarh- 48.30
Bihar – 50.00
Jharkhand – 47.00
West Bengal- 48.70
Maharashtra- 52.50
Andhra Pradesh- 52.40
Telangana- 51.60
Karnataka- 48.10
Tamil Nadu- 48.90
Kerala – 50.20
Odisha- 48.90
Goa-45.80
Sikkim – 46.00
Tripura- 45.80
Assam- 45.40
Meghalaya- 42.50
Manipur – 47.70
Mizoram- 43.80
Nagaland- 46.60
Arunachal Pradesh- 42.90
Who will take the loss?: It is clear that despite the reduction of excise duty on petroleum products in November 2021, the share of the central government in taxes is much higher than that of the states. In such a situation, if the prices of petrol and diesel are to be brought at the rate of the first from the Corona period, then the central and state governments will have to be prepared for a revenue loss of about 92 thousand crores. It happens..None of the Center or the State or both.