New Delhi: Total incidence of taxes on petrol Excise duty has come down to 50 per cent and diesel to 40 per cent after the central government, and there is a slightly higher proportion in states that have also cut local sales tax or tub on fuel.
The retail price of petrol and diesel is decided after adding central excise duty, commission paid to dealers and value added tax (VAT) to the prices of the basic oil. The base oil price is the prevailing international benchmark rate plus freight.
On November 1, before the duty cut, Delhi had central excise duty of Rs 32.90 per liter and 30 per cent VAT for 54 per cent of the retail sale price of diesel as per the price build-up of the fuel available. State owned fuel retailer.
This has come down to 50 per cent in Delhi after a reduction of Rs 5 per liter in excise duty.
Two dozen states and union territories have matched the excise duty deduction of the central government with the reduction in VAT. And, in those states, the percentage of taxes in the retail price would be marginally lower. Delhi has not reduced VAT yet.
Similarly, on diesel, central excise duty of Rs 31.80 per liter plus 16.75 per cent of VAT and air ambient duty of Rs 250 per kilolitre, brought the total incidence of taxation in Delhi to 48 per cent.
This has come down to 40 per cent in Delhi after excise duty cut by Rs 10 per litre. In cases where VAT has been deducted, the incidence will be even lower.
The base price, which includes the cost of oil and freight, is between Rs 52.01 per liter in Chennai and Rs 59.89 in Ladakh. On top of this the central government charges an excise duty of Rs 27.90 which is paid at the factory gate (refinery in this case). Thereafter, state governments levy different rates of local sales tax or VAT.
Rajasthan has the highest VAT on petrol at Rs 30.51 per liter, followed by Maharashtra at Rs 29.99, Andhra Pradesh (Rs 29.02) and Madhya Pradesh (Rs 26.87). The lowest VAT in Andaman and Nicobar is Rs 4.93 per litre.
Similarly, the base price of diesel ranges from Rs 52.13 per liter in Chennai to Rs 59.57 in Ladakh. On top of this, the central government charges an excise duty of Rs 21.80.
The highest VAT is Rs 21.19 per liter in Andhra Pradesh, followed by Rajasthan at Rs 21.14 and Maharashtra at Rs 20.21. Himachal Pradesh The lowest VAT is Rs 4.40 per liter and Andaman and Nicobar is Rs 4.58 per litre.
Petrol pump dealers are paid a commission of Rs 3.85 per liter on petrol and Rs 2.58 on diesel.
Petrol prices have been reduced by Rs 8.7 per liter and diesel by Rs 9.52 in BJP-ruled states and union territories – from Ladakh to Puducherry – from the central government’s announcement of reduction in excise duty along with reduction in VAT. match.
Bowing to pressure, the central government last week cut excise duty on petrol by Rs 5 per liter and diesel by Rs 10 per liter to provide relief to consumers suffering from record-high retail fuel prices.
This announcement was matched by 24 states and union territories cutting VAT rates in varying proportions.
Due to this, the BJP and its allies-ruled states have seen a steep reduction in the prices of petrol and diesel as compared to Maharashtra, Delhi, West Bengal and other states, according to the price charts of various locations prepared by the state and other political parties. are governed. -Proprietary oil companies.
Apart from the reduction in excise duty, the additional deduction is lowest in Uttarakhand, as the duty cut is less and is highest in Ladakh. On petrol, the price over and above the reduction in excise duty ranges from Rs 1.97 per liter in the case of Uttarakhand to Rs 8.70 in the case of Ladakh.
For diesel, additional deduction of VAT is required, ranging from Rs 17.5 per liter in Uttarakhand to Rs 9.52 in the case of Ladakh.
The states which have given additional VAT benefits include Karnataka, Puducherry, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Tripura, Assam, Sikkim, Bihar and Madhya Pradesh.
These include Goa, Gujarat, Dadra and more. Nagar Haveli, Daman and Diu, Chandigarh, Haryana, Himachal Pradesh, Jammu and Kashmir, Uttarakhand, Uttar Pradesh, Odisha, Meghalaya and Ladakh.
The states which have not reduced VAT so far include Congress and its allies-ruled Rajasthan. Punjab, Chhattisgarh, Maharashtra, Jharkhand and Tamil Nadu. These include AAP-ruled Delhi, TMC-ruled West Bengal, Left-ruled Kerala, TRS-led Telangana and YSR Congress-ruled Andhra Pradesh.
Wednesday’s excise duty cut had translated to a reduction in petrol price by Rs 5.7 to Rs 6.35 per liter and diesel prices from Rs 11.16 to Rs 12.88 across the country.
Since states levy VAT not only on base price but also on excise duty levied by the Centre, the overall incidence of reduction in prices was higher than the reduction in excise duty by Rs 5 per liter on petrol and Rs 10 per liter in diesel . The shortfall was larger in states with higher VAT.
Petrol price in Delhi was reduced by Rs 6.07 per liter and diesel by Rs 11.75 per liter.
After the change in duty, the most expensive petrol is being sold in Rajasthan at Rs 111.10 per liter (Jaipur), followed by Mumbai (Rs 109.98) and Andhra Pradesh (Rs 109.05). Fuel is below Rs 100 per liter in most BJP-ruled states except Karnataka (Rs 100.58), Bihar (Rs 105.90), Madhya Pradesh (Rs 107.23) and Ladakh (Rs 102.99).
The retail price of petrol and diesel is decided after adding central excise duty, commission paid to dealers and value added tax (VAT) to the prices of the basic oil. The base oil price is the prevailing international benchmark rate plus freight.
On November 1, before the duty cut, Delhi had central excise duty of Rs 32.90 per liter and 30 per cent VAT for 54 per cent of the retail sale price of diesel as per the price build-up of the fuel available. State owned fuel retailer.
This has come down to 50 per cent in Delhi after a reduction of Rs 5 per liter in excise duty.
Two dozen states and union territories have matched the excise duty deduction of the central government with the reduction in VAT. And, in those states, the percentage of taxes in the retail price would be marginally lower. Delhi has not reduced VAT yet.
Similarly, on diesel, central excise duty of Rs 31.80 per liter plus 16.75 per cent of VAT and air ambient duty of Rs 250 per kilolitre, brought the total incidence of taxation in Delhi to 48 per cent.
This has come down to 40 per cent in Delhi after excise duty cut by Rs 10 per litre. In cases where VAT has been deducted, the incidence will be even lower.
The base price, which includes the cost of oil and freight, is between Rs 52.01 per liter in Chennai and Rs 59.89 in Ladakh. On top of this the central government charges an excise duty of Rs 27.90 which is paid at the factory gate (refinery in this case). Thereafter, state governments levy different rates of local sales tax or VAT.
Rajasthan has the highest VAT on petrol at Rs 30.51 per liter, followed by Maharashtra at Rs 29.99, Andhra Pradesh (Rs 29.02) and Madhya Pradesh (Rs 26.87). The lowest VAT in Andaman and Nicobar is Rs 4.93 per litre.
Similarly, the base price of diesel ranges from Rs 52.13 per liter in Chennai to Rs 59.57 in Ladakh. On top of this, the central government charges an excise duty of Rs 21.80.
The highest VAT is Rs 21.19 per liter in Andhra Pradesh, followed by Rajasthan at Rs 21.14 and Maharashtra at Rs 20.21. Himachal Pradesh The lowest VAT is Rs 4.40 per liter and Andaman and Nicobar is Rs 4.58 per litre.
Petrol pump dealers are paid a commission of Rs 3.85 per liter on petrol and Rs 2.58 on diesel.
Petrol prices have been reduced by Rs 8.7 per liter and diesel by Rs 9.52 in BJP-ruled states and union territories – from Ladakh to Puducherry – from the central government’s announcement of reduction in excise duty along with reduction in VAT. match.
Bowing to pressure, the central government last week cut excise duty on petrol by Rs 5 per liter and diesel by Rs 10 per liter to provide relief to consumers suffering from record-high retail fuel prices.
This announcement was matched by 24 states and union territories cutting VAT rates in varying proportions.
Due to this, the BJP and its allies-ruled states have seen a steep reduction in the prices of petrol and diesel as compared to Maharashtra, Delhi, West Bengal and other states, according to the price charts of various locations prepared by the state and other political parties. are governed. -Proprietary oil companies.
Apart from the reduction in excise duty, the additional deduction is lowest in Uttarakhand, as the duty cut is less and is highest in Ladakh. On petrol, the price over and above the reduction in excise duty ranges from Rs 1.97 per liter in the case of Uttarakhand to Rs 8.70 in the case of Ladakh.
For diesel, additional deduction of VAT is required, ranging from Rs 17.5 per liter in Uttarakhand to Rs 9.52 in the case of Ladakh.
The states which have given additional VAT benefits include Karnataka, Puducherry, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Tripura, Assam, Sikkim, Bihar and Madhya Pradesh.
These include Goa, Gujarat, Dadra and more. Nagar Haveli, Daman and Diu, Chandigarh, Haryana, Himachal Pradesh, Jammu and Kashmir, Uttarakhand, Uttar Pradesh, Odisha, Meghalaya and Ladakh.
The states which have not reduced VAT so far include Congress and its allies-ruled Rajasthan. Punjab, Chhattisgarh, Maharashtra, Jharkhand and Tamil Nadu. These include AAP-ruled Delhi, TMC-ruled West Bengal, Left-ruled Kerala, TRS-led Telangana and YSR Congress-ruled Andhra Pradesh.
Wednesday’s excise duty cut had translated to a reduction in petrol price by Rs 5.7 to Rs 6.35 per liter and diesel prices from Rs 11.16 to Rs 12.88 across the country.
Since states levy VAT not only on base price but also on excise duty levied by the Centre, the overall incidence of reduction in prices was higher than the reduction in excise duty by Rs 5 per liter on petrol and Rs 10 per liter in diesel . The shortfall was larger in states with higher VAT.
Petrol price in Delhi was reduced by Rs 6.07 per liter and diesel by Rs 11.75 per liter.
After the change in duty, the most expensive petrol is being sold in Rajasthan at Rs 111.10 per liter (Jaipur), followed by Mumbai (Rs 109.98) and Andhra Pradesh (Rs 109.05). Fuel is below Rs 100 per liter in most BJP-ruled states except Karnataka (Rs 100.58), Bihar (Rs 105.90), Madhya Pradesh (Rs 107.23) and Ladakh (Rs 102.99).
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