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New Delhi17 hours ago
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In Rajasthan and Madhya Pradesh, the price of petrol has reached Rs 100 per liter. Both these states are the first to collect tax (VAT) on petrol and diesel. VAT is being charged in Rajasthan on 36% and in Madhya Pradesh 33%. As a result, petrol is more expensive than other states.
VAT is highest in Manipur, not just VAT in Lakshadweep
Manipur is at the forefront of collecting VAT. Tax is being charged here at 36.50% on petrol and 22.50% on diesel. In large states, Tamil Nadu has lower VAT. Here 15% tax is charged on petrol and 11% on diesel. But the screw is that here VAT is charged at Rs 13.02 on petrol and Rs 9.62 per liter cess (cess) on diesel. Lakshadweep is the only state where VAT is not levied.
Central government levies Rs 33 exc ise duty
On the base price of petrol and diesel, which is now close to 32 rupees, the central government is charging excise duty of 33 rupees. After this, the state governments charge VAT and cess on their own, after which their price has increased 3 times from the base price.
Why the difference in price in different cities of the state?
When the petrol-diesel reaches a petrol pump, it is charged according to how far the petrol pump is from an oil depot. Due to this, rent increases and decreases as the city changes. Due to which there is a difference in price in different cities.
VAT to states increased by 43% in 5 years
Earnings from states levying VAT on petrol and diesel have increased by 43% in 5 years. Its revenue in the financial year 2014-15 was 1.37 lakh crore, which increased to 2 lakh crore in 2019-20. Despite the lockdown imposed due to Corona, in the first half (April-September) of the current financial year 2020-21, VAT has earned 78 thousand crores. The central government earned Rs 3.34 lakh crore in 2019-20 by levying excise duty on petroleum products. When Modi government was formed for the first time in May 2014, it earned 1.72 lakh crore from excise duty in 2014-15, which means it doubled in just 5 years.
Maharashtra leads in VAT revenue