The central and the states are acting as if they are on par with the petro duck. States that receive a share of the tax levied by the center are burdening consumers in the form of VAT and cess as if it were not enough. To what extent is any state imposing tax burden?
States are in race with Union Government on Petro taxes: Petro Duck is terrorizing middle class and lower middle class people in the country. Rising petrol and diesel prices are a cause for concern. However, with this development taking place at the national level, the popularity of the central government is naturally on the rise. Even if it should be so. Because the center has to make decisions domestically in line with international developments. But is the center responsible for the petro duck? That is to say, it is not. Because if petrol and diesel prices are decided in the country based on the price of crude oil, even if transport charges and dealer margins are included, it should be between Rs 30 and Rs 40 per liter. The reason for this is that the Center and the states are burdened with taxes and cess on petrol and diesel. How much is the center tax yet? What is the burden of additional tax and cess levied by the states? Let’s find out now.
Recently, the Modi government at the Center has drastically increased the excise duty on petro products. As a result, petrol and diesel prices are rising on a daily basis. In fact, the price of a liter of crude oil is Rs 22.16. Internationally the price of a barrel of crude oil is currently US $ 48. If it is converted into Indian currency, Rs. 3,525. One barrel of crude is 159 liters. The price of a liter of crude oil is Rs. 22.16. It has refining, shipping, dealer margins added. However, the tax levied by the Center is Rs 32 per liter. The central government charges Rs 32.98 per liter for petrol and Rs 31.83 per liter for diesel in the name of excise duty and road cess. If petrol and diesel prices double with the tariffs levied by the Center, the states are also competing with the Center in levying taxes and cess.
The tax levied by the states is as follows
The Maharashtra government is levying 26 per cent VAT and an additional tax of Rs 10.12 per liter in Thane and Navi Mumbai, which are in the suburbs of Mumbai and its suburbs. In the rest of Maharashtra, an additional tax of 25 per cent VAT will be levied at Rs 10.12 per liter. 26.22 The Great Government is putting the burden on the people. In the case of Madhya Pradesh, 33 per cent VAT is Rs 4.5 per liter (in the name of one rupee cess) plus an additional Rs. The government there is carrying the burden of 25.96. When it comes to Andhra Pradesh, this duck is no less. 31 per cent VAT plus Rs. 4 per liter (Rs. 1 per cess in the name of road development) plus Rs. Carrying a burden of 24.96 rupees. Even small states like Manipur impose the highest VAT. There is a burden of Rs 25 per liter in the name of 36.5 per cent VAT. However, the lack of additional cess is blinding.
In Rajasthan, 36 per cent VAT is Rs. 1500 Road Development Cess plus an additional Rs. 24. 68, in Tamil Nadu 15 per cent VAT is Rs.13.02 per liter plus additional tax of Rs. 22.68, in Telangana 35.2 per cent VAT plus Rs. 22. 67, 35 per cent sales tax in Karnataka at Rs. 22.54 per liter. Odisha with 32 per cent VAT at Rs 20.60 and Kerala with 24 per cent MST including employment cess reduction of Rs. 5 plus an additional burden of Rs.20.56 per liter on consumers. The national capital, New Delhi, charges Rs 19.32 per liter plus 30 per cent VAT, Chhattisgarh charges Rs 18.10 per liter plus 25 per cent VAT, Uttar Pradesh 26.80 per cent or Rs 18.74 per liter, whichever is higher, plus Rs 17.26 per liter. . In Nagaland, VAT of 29.80 per cent or whichever is higher at Rs 18.26 is charged at Rs 5 plus surcharge of Rs 2 and road maintenance cess of Rs 22.15 per liter. In Assam, VAT of 32.66 per cent or Rs 22.63 per liter is levied at a higher rate of Rs 21.03 per liter.
In the Union Territory of Jammu and Kashmir, an additional Rs 19.95 per liter is being levied on 24 per cent MST plus employment (cess reduction of Rs 0.50 per liter). Petro duck in Punjab is varied and complex. 2050 cess per thousand liters, 10 paise per liter in the name of Urban Transport Fund, 24.79 per cent VAT plus 10 per cent VAT plus Rs. 18.27 The Government of Punjab is charging an additional. Jharkhand levies a 22 per cent sales tax or tax of Rs 17 per liter, whichever is higher, plus an additional cess of Rs 1 per liter for a total of Rs 18 per liter. The Bengal government levies an additional cess of Rs 1,000 per liter, whichever is higher at 25 per cent VAT or Rs 13.12 per liter. However, the government is exempting 17 rupees from this. In Ladakh, 24 per cent MST is charged at Rs 17.95 per liter plus employment cess reduction of Rs 2.5. In Haryana, 25 per cent VAT or Rs 15.62 per liter is levied at an additional tax of 5 per cent VAT at Rs 16.90 per liter.
In Bihar, VAT is 26 per cent or Rs 16.65 per liter, which is 30 per cent surcharge plus Rs 16.74 per liter, in Tripura 25 per cent VAT plus 3 per cent Tripura road development cess of Rs. 16.58, in Goa 25 per cent VAT plus 0.5 per cent green cess is Rs. 16.18 per liter, in Himachal Pradesh 25 per cent VAT or Rs. 15.50 per liter is higher at Rs. Rs 16.10 per liter, Rs 10 per liter in Chandigarh (+22.45 per cent) or Rs 12.58 per liter, whichever is higher, is being charged to the state exchequer at Rs 15.46 per liter.
It is a pity that the Center is burdened with the burden of petro at any level. At the same level, the states are burdening the consumers. It is not an exaggeration to say that no state government has come up with the idea of reducing the burden on consumers to some extent while reducing revenue to the state exchequer. The rulers are swayed by comments that development will falter if revenue to the state exchequer declines. In fact, excluding the cost of the rulers’ fanfare, the bloody burden of the people can be alleviated to some extent. People want rulers who think in that direction to come.
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