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Rs10k crore is what Gujarat makes from citizens' fuel needs

The figures show that the tax collected on petrol and diesel has jumped every year with increase in prices.

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The state government pocketed a staggering Rs10,000 crore as Value Added Tax (VAT) and Cess on sale of petrol and diesel in the last three years, the assembly was informed on Monday.

State finance minister, Vaju Vala said in a written reply that the VAT rate on petrol and diesel was 23% and 21% respectively, while Cess charged on the two fuels was 2% and 3% respectively.

The information was in response to a question by Congress MLA from Babra, Bavku Undhad.

Vala informed that the state government earned a total of Rs10,114.57 crore on sale of petrol and diesel in calendar years 2009, 2010 and 2011.  

Of the total amount, Rs8,251.45 crore were collected as VAT, while Cess income was Rs1,863.12 crore.

“The state government collected Rs2,103 crore as VAT on petrol and diesel in 2009, Rs2,651 crore in 2010 and Rs3,496 crore in 2011. The Cess collected stood at Rs494 crore, Rs600 crore and Rs768 crore in the three years respectively,” the finance minister said.

The figures show that the tax collected on petrol and diesel has jumped every year with increase in prices.

According to the Opposition Congress, VAT rates on petrol and diesel are the highest in Gujarat in the whole country.

The party has been demanding a reduction in tax rates on the two fuels, but the government has rejected the demand.

In reply to another question by Congress MLA, Iqbal Patel, the finance minister informed that the rate of VAT on CNG, including additional tax, is 15%. Interestingly, the 15% tax on CNG in the state is also the highest in the country.

Among the other states, Maharashtra has levied tax of 12.5% on CNG, Tripura (12.5%), Haryana (5%), UP (13.5%) and New Delhi (0%).

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