Petrol Tax: Income Of States Increased Due To Tax On Petrol And Diesel

Petrol Tax: Income Of States Increased Due To Tax On Petrol And Diesel

Highlights:

  • The government’s earnings are increasing tremendously due to the tax imposed on petrol and diesel.
  • This has been revealed from a report by credit rating agency Crisil.
  • According to Crisil’s report, the government’s treasury is also filling a lot due to the continuous increase in the price of petroleum fuel.
  • It has been told that the revenue collection of the states in the current financial year will exceed the level of pre-Covid.

Mumbai
The government’s earnings are increasing tremendously due to the tax imposed on petrol and diesel. This has been revealed from a report by credit rating agency Crisil. According to Crisil’s report, the government’s treasury is also filling a lot due to the continuous increase in the price of petroleum fuel. It has been told that the revenue collection of the states in the current financial year will exceed the level of pre-Covid.

50% increase in revenue collection
Rating agency Crisil said in its report on Thursday that there will be a 50 percent increase in revenue collection due to the steep increase in the prices of petroleum fuel. In the last financial year, there was a revenue contribution of 20 percent. In comparison, there will be 30 percent more tax collection. However, there will be a decline in the overall sales of fuels. Taxes from fuels contribute 10 percent to the revenue of the states.

Also read: Reliance 44th AGM: Reliance Retail will generate 10 lakh jobs, 65 thousand new jobs given amid the pandemic

See also  Ways to increase energy cooperation discussed in the first edition of Arab India Energy Forum

Contribution of 20% GST in revenue
It is noteworthy that 20 percent of the revenue of the states is contributed through the collection of GST. The economic activity has improved in the fourth quarter of the financial year 2020-21 due to the relaxation of the lockdown. Central taxes (25 per cent), state GST (21 per cent), grants from the Center (17 per cent) and sales tax on petrol and alcohol (13 per cent) are the major contributors to the state’s revenue. However, the report said, if the third wave of Kovid-19 comes in the country and a lockdown is imposed, then the estimate can be changed negatively.

6 percent drop last year
In the last financial year, there was a decline of 6 percent in the revenue of 10 states, but this financial year the revenue collection will cross the pre-pandemic level. This estimate is based on the estimates of 10 large states, which together account for about 70 percent of the gross state domestic product. These states include Maharashtra, Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Telangana, Rajasthan, West Bengal, Madhya Pradesh and Kerala.

Tax saver FD will get interest up to 6.75% in these banks

#Petrol #Tax #Income #States #Increased #Due #Tax #Petrol #Diesel

Leave a Comment

close
%d bloggers like this: