NEW DELHI: The government earned Rs 3.4 lakh crore in financial year 2020-21 from central excise duty and cess on petroleum products, petroleum minister Hardeep Puri informed the Lok Sabha on Monday, adding that it used a large part of the money to provide free vaccines and relief to the poor through the PM Garib Kalyan Yojana, under which free ration was given to 80 crore beneficiaries during April-November in 2020 and May-June this year.
The minister stated excessive taxes levied by states on petrol and diesel have brought on the spurt in costs of those important fuels. Madhya Pradesh levies the best gross sales tax or VAT on petrol within the nation, whereas Rajasthan has the best tax on diesel, Puri stated.
Taxes, each central and state, represent as much as 55% of the retail value of petrol and 50% of diesel.Whereas the central authorities levies a hard and fast excise obligation of Rs 32.90/litre on petrol and Rs 31.80/litre on diesel, states cost an advert valorem price of VAT that ends in per litre tax going up when costs rise, and falling when charges come down.
