For every ₹100 spent on petrol and diesel in India, ₹70 goes towards taxes
- The Indian government increased the excise duty on petrol and diesel by ₹10 and ₹13 per litre respectively, hoping to mop up ₹1.6 lakh crore this year.
- As a result of this, tax on petrol and diesel comprises of 70% of the total price per litre
- With the crude oil prices at historically low levels, this could help the government reduce the fiscal deficit at a time when the economy has come to a standstill due to the nationwide lockdown.
Various state governments across the country have increased VAT on petrol and diesel to make up for the loss of revenue caused by the Coronavirus lockdown. For example, the Delhi government recently increased the VAT petrol to 30% and the VAT on diesel was almost doubled to 30%.
For every ₹100 of petrol, ₹70 goes towards taxes – here’s how
|Particulars||Petrol (₹ per litre)||Diesel (₹ per litre)|
|Excise Duty (CG)||32.98||31.83|
|Taxes & Duties %||70%||70%|
Note: Prices in Delhi, may vary in other states
India to gain ₹1.6 lakh crore this fiscal from record excise duty hike on petrol, diesel
Petrol and diesel prices are rising as states hike tax to cover coronavirus cost— the steepest hike is in Delhi
The excise duty on petrol rises by ₹10 and on diesel by ₹13 starting May 6
Popular on BI
- Finance minister holds pre-budget stakeholder consultation with BJP functionaries
- Amazon Sale: Best deals on kitchen items and dining products
- Amazon Great Republic Sale: Best deals on kitchen appliances
- India records 2,71,202 fresh COVID-19 cases in the last 24 hours, active cases highest in 225 days
- Amazon Great Republic Day Sale 2022 — Best deals and offers on laptops