Tax on Petrol Diesel: The government and oil companies are earning an additional Rs 730 crore from the increased tax every day. If we add the same amount annually, it becomes Rs 2.25 lakh crore.
The Modi government is estimated to earn a whopping Rs 2.25 lakh crore from the increased tax on petrol and diesel since the lockdown. This is the case when crude oil prices around the world are in a historic downturn. According to Bloomberg Intelligence, the government and oil companies are earning an additional Rs 730 crore from the increased tax every day. If we add the same amount annually, then it becomes Rs 2.25 lakh crore. According to experts, in the last financial year, the central and state governments received a total revenue of Rs 5.5 lakh crore from the petroleum sector.
Economists say that this will help the government to deal with the Corona crisis. In this period, the government has reduced the income from tax and on the other hand, the expenditure has increased due to the announcement of relief for the poor. In such a situation, the government can use this additional tax from petroleum to balance the budget. In May itself, the central government increased excise duty on diesel by Rs 13 and petrol by Rs 10. With this increase, India has become the highest tax-paying 69% tax on petroleum. Not only this, but the Modi government has also increased road cess on petroleum products by Rs 8 per liter.
On the one hand, the central government has increased, on the other hand, the state governments have also found a cut to deal with the Corona crisis by increasing VAT. Governments of Delhi, Andhra Pradesh, Assam, and West Bengal state that their revenue has decreased by up to 90 percent during the lockdown implemented to deal with Corona. In such a situation, states have also tried to fill their coffers by increasing the duty on petrol and diesel to compensate for the reduction in tax.
Prices go down tax increases: How has the tax on petrol and diesel increased. It can also be understood that in December 2019, the price of crude oil was $ 65.5 billion per barrel and in April it came down to $ 19.9 billion per barrel. But in reality, there was no difference in the prices of petrol and diesel in India. Instead, since June 7, the inverse prices started rising. At present, the government is charging excise duty of Rs 32.98 per liter on petrol, while excise duty on diesel is being charged Rs 31.83.