The state government collected Rs22,880 crore on petrol, diesel and other fuels in the last two financial years, information tabled by the government in the state assembly on Wednesday shows.
The state government charges 20% Value Added Tax (VAT) on petrol and diesel, and 4% Cess on both fuels. The rate of VAT is 15% in the case of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG).
Deputy chief minister Nitin Patel said in a written reply in the House that the government collected Rs2,862.41 crore as VAT and Central Sales Tax (CST) on petrol and Rs6,371.19 crore on diesel, in 2016-17.
Additionally, it collected Rs592.92 crore as Cess on petrol and Rs1,319.72 crore on diesel. The minister also informed that it collected Rs440.18 crore as VAT on CNG, which is used in vehicles, and Rs925.05 crore on PNG. In the first nine months of the ongoing financial year, i.e. from Apr-Dec 2017, the state government collected Rs2,485 crore as VAT and CST on petrol, and Rs5,531.78 crore on diesel.
"Cess on petrol in 2017-18 was Rs482.88 crore and Rs1,074.79 crore on diesel," the reply said. The reply further said that the government earned Rs229 crore as VAT on sale of CNG, and a little more than Rs570 crore on PNG. In view of rising fuel prices, the state government had cut VAT on petrol and diesel by 4% in October, just a few weeks before the assembly elections.
Petrol and diesel prices had fallen significantly as a result, but they have gone up again in the past couple of months due to increase in crude oil prices.
Petrol, diesel highest VAT earners
Petrol and diesel as well as natural gas are the highest sources of VAT earnings for the state government. Deputy chief minister Nitin Patel said in a written reply in the House on Wednesday that it collected Rs49,150 crore as VAT in 2016-17 and Rs28,830 crore in the first nine months of 2017-18.
Patel said that petrol and diesel contributed highest to the state government’s VAT earnings for the both years. The two fuels were followed by natural gas, automobiles and auto parts, and cement as highest VAT contributors in both years.
FUELLING FUNDS
- State government charges 20% VAT on petrol and diesel, and 4% Cess on both fuels.
- Additionally, it colle-cted Rs592.92 cr as Cess on petrol and Rs1,319.72 crore on diesel.
- From Apr-Dec 2017, it collected Rs2,485 crore as VAT and CST on petrol, and Rs5,531.78 crore on diesel.
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