Centre got 40% of its indirect taxes from levies on petrol and diesel

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Centre got 40% of its indirect taxes from levies on petrol and dieselThere was a massive jump in excise duty on petrol and high-speed diesel in 2015-16, which helped Indian government make almost 40% of its earning through indirect tax.
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In comparison, the amount was 34% of the total indirect taxes the previous year.

Also read: Petrol, diesel sales go up post demonetisation as people rushed to tank up fuel with old notes

A CAG study showed that there was almost 70% rise in the union excise duty collection, which stood from Rs 1.69 lakh crore during 2013-14 to Rs 2.87 lakh crore in 2015-16, out of which a major part came from petrol, diesel, cigarettes and gutka.

Excise revenue from petroleum products contributed to 52% of collections in 2013-14, and went up to almost 69% during 2015-16. This happened because the government increased levies on petrol and high-speed diesel from Rs 1.2 per litre and Rs 1.46 per litre to Rs 8.95 per litre and Rs 7.96 per litre, respectively, owing to falling global prices.

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Also read: Now anyone can have a petrol pump in India!

In 2015-16, government collected Rs 1.99 lakh crore revenue from petroleum products, and from at Rs 21,000 crore sin goods (mainly tobacco products).

The CAG report highlighted how exemptions are making the government lose money. More than Rs 2 lakh crore of revenue was foregone because of exemptions, which CAG said need to be rationalised.

(Image source: Telangana Today)