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Bhaskar Data Story: How does a petroleum of Rs 25 reach Rs 81 when it reaches you? determine what proportion the govt earns from petrol
Petrol and diesel are items whose prices are constantly rising. albeit it’s less, the burden on our pockets isn’t less. it’s often said that the worth of petroleum within the international market is falling but the worth of petrol-diesel isn’t falling in our country. what’s the rationale for this? and the way do petrol and diesel prices go up 3 times together with your reach? How do governments enjoy this? Let’s understand ..
Now allow us to skills the govt earns from your money.
Central Government: the govt collects excise duty
The central government imposes excise duty on the worth of petrol-diesel. In May this year, the central government increased excise duty on petrol and diesel. at the present , excise duty is Rs 32.98 per liter on petrol and Rs 31.83 on diesel.
en the Modi government came to power in May 2014, the excise duty on a liter of petrol was Rs 9.48 and on diesel Rs 3.56. this is often because petrol-diesel prices haven’t come down even after the autumn in oil prices. Since the Modi government came to power in May 2014, excise duty has been slashed 16 times. However, the duty has been reduced only 3 times.
The reason for this is often that the govt makes good money from it. consistent with the Petroleum Planning and Analysis Cell (PPAC), within the half-moon of this year (April-June), the govt earned Rs 49,914 crore through excise duty and various taxes on petroleum products. These earnings would are even higher if Corona had not come and therefore the lockdown had not taken place.
State Government: Earnings by levying VAT (2020-21 figures for the primary quarter) (Source: ppac.gov.in) The Central Government earns by levying excise duty and different taxes. The government also earns you by levying VAT i.e. value added tax. an equivalent excise duty of the central government applies to the entire country, but if the state is different, the VAT rate also varies from state to state.
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