The federal government earned Rs 3.4 lakh crore in monetary yr 2020-21 from central excise obligation and cess on petroleum merchandise, petroleum minister Hardeep Puri knowledgeable the Lok Sabha on Monday, including that it used a big a part of the cash to supply free vaccines and aid to the poor by means of the PM Garib Kalyan Yojana, below which free ration was given to 80 crore beneficiaries throughout April-November in 2020 and Might-June this yr.
“The excise obligation/cess collected (by the central authorities) from petrol is Rs 1,01,598 crore and from diesel is Rs 2,33,296 crore throughout the monetary yr 2020-21 (that ended on March 31 this yr),” Puri mentioned in a written reply to a query.
The minister mentioned excessive taxes levied by states on petrol and diesel have precipitated the spurt in costs of those important fuels. Madhya Pradesh levies the best gross sales tax or VAT on petrol within the nation, whereas Rajasthan has the best tax on diesel, Puri mentioned.
Taxes, each central and state, represent as much as 55% of the retail value of petrol and 50% of diesel.
Whereas the central authorities levies a hard and fast excise obligation of Rs 32.90/litre on petrol and Rs 31.80/litre on diesel, states cost an advert valorem fee of VAT that leads to per litre tax going up when costs rise, and falling when charges come down.