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State governments’ taxes and cesses (sales tax/VAT) collections from auto fuels rose, albeit marginally by 1.2 per cent, on an annual basis to ₹2.02-lakh crore in the financial year 2020-21, the Rajya Sabha was informed on Monday.
The Minister of State for Petroleum and Natural Gas, Rameswar Teli, in a written reply tabled in the Rajya Sabha said that tax and cess collection from 16 major oil and gas companies rose from around ₹2-lakh crore in FY20.
Compared to FY19, the collections during the Covid pandemic year (FY21) were almost flat. Tax and cess collections during FY19 stood at ₹2.01-lakh crore.
However, the data presented by the minister also showed that the contribution of the major oil and gas companies to the Central Exchequer rose by 36 per cent year-on-year to ₹4.55-lakh crore in FY21, as compared to ₹3.34-lakh crore in FY20.
Compared to FY19, the contributions were up 31 per cent from ₹3.48-lakh crore.
VAT collections
For the April-June quarter in FY22, the State VAT collections were around ₹55,974 crore.
Petrol and diesel are currently not under GST and States levy VAT on top of the excise duty charged by the Centre.
The excise duty on petrol is ₹27.90 per litre, while that on diesel is ₹21.80 a litre. Out of the total taxes on petrol, the basic excise duty is ₹1.40.
Besides, the government levies a special additional excise duty of ₹11 per litre, a road and infrastructure cess of ₹13 as well as an agriculture infrastructure and development cess of ₹2.50.
In the case of diesel, the basic excise duty is ₹1.80. A special additional excise duty and road and infrastructure cess of ₹8 is also charged.
Besides, ₹4 is charged as agriculture infrastructure and development cess.
Fillip to economy
In November 2021, after retail prices of petrol and diesel rose to record levels, the Central government had reduced the Central excise duty on petrol by ₹5 and diesel by ₹10.
The measure was aimed to give a fillip to the economy and to boost consumption and keep inflation low, thus helping the poor and middle classes.
Many States/UTs have also reduced the VAT on petrol and diesel subsequently, the minister informed the Rajya Sabha in a separate question on Monday.
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