Lok Sabha Question No. 1334 (UNSTARRED), answered on 2017-12-22
Subject: Tax Levied on Diesel and Petrol
Ministry: FINANCE
Asked by: N.K. PREMACHANDRAN, RAM KUMAR SHARMA KUSHWAHA, KINJARAPU RAM MOHAN NAIDU, ASADUDDIN OWAISI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

*****

## LOK SABHA

## UNSTARRED QUESTION NO. 1334

## TO BE ANSWERED ON FRIDAY THE 22 TH   DECEMBER, 2017 PAUSHA 01,1939 (SAKA)

## TAX LEVIED ON DIESEL AND PETROL

1334. SHRI N.K PREMACHANDRAN:

SHRI RAM KUMAR SHARMA:

SHRI RAM MOHAN NAIDU KINJARAPU:

SHRI ASADUDDIN OWAISI:

Will the Minister of FINANCE be pleased to state:

- (a) whether tax levied on diesel and petrol is recovered from consumers at multiple levels from production of crude oil to retailing, if so, the details thereof along with the level-wise rates of taxation;
- (b)  the  average  annual  amount  of  revenue  generated from  the  petroleum  industry through the said levels of taxation;
- (c) whether Central Excise and VAT has almost doubled the prices of crude oil, if so, the details thereof  and  the share  of the States/UTs  in the excise duty so collected/utilised;
- (d) whether the Government proposes to reduce the taxes levied on petrol and diesel, if so, the details thereof along with the steps taken in this regard to give relief to the consumers;
- (e)  the  details  of  cumulative  amount  in  the  form  of  cess  and  tax  collected  by  the Government per litre of petrol and diesels during the last three years; and
- (f)  whether  the  increase  in  collection  in  form  of  cess  and  taxes  has  led  to  higher subsidies for LPG and kerosene and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

- (a): Customs Duty and Central Excise Duty on Petrol and Diesel are levied by Central Government and VAT by State Government.  The details of Tax on Petrol and Diesel are as under:
- (b) :  The  total  contribution  to  Central  and  State  Government  Exchequer  from  the petroleum sector, for the year 2016-17, was as below:

| Tax Elements   | Petrol   | Diesel   |
|----------------|----------|----------|
| Customs Duty   | 2.5%     | 2.5%     |

| Excise Duty   | Rs.19.48/ litre   | Rs.15.33/ litre   |
|---------------|-------------------|-------------------|
| State VAT     | As per Annexure-1 | As per Annexure-1 |

(Rs. crore)

| Particulars                                    | Particulars                                    | 2016-17                                        |
|------------------------------------------------|------------------------------------------------|------------------------------------------------|
| 1. Contribution to central Exchequer           | 1. Contribution to central Exchequer           | 1. Contribution to central Exchequer           |
|                                                | Tax/Duties on Crude oil/gas                    |                                                |
|                                                | Cess on Crude oil                              | 13285                                          |
|                                                | Royalty on crude oil/gas                       | 4649                                           |
|                                                | Customs Duty                                   | 9521                                           |
|                                                | Excise Duty                                    | 242691                                         |
|                                                | Service Tax                                    | 2956                                           |
|                                                | Others                                         | 399                                            |
|                                                | Total                                          | 273502                                         |
| 2. Contribution to State Exchequer (Rs. crore) | 2. Contribution to State Exchequer (Rs. crore) | 2. Contribution to State Exchequer (Rs. crore) |
|                                                | Tax/Duties on Crude & Petroleum products       | Tax/Duties on Crude & Petroleum products       |
|                                                | Royalty on Crude oil/gas                       | 11942                                          |
|                                                | Sales Tax/VAT on POL Products                  | 166378                                         |
|                                                | Octroi, Duties incl. Electricity Duty          | 3524                                           |
|                                                | Entry Tax/others                               | 7742                                           |
|                                                | Total                                          | 189587                                         |

(c):

Crude Petroleum attracts:

- -Nil Customs duty
- -20% Oil Industry development Cess
- -Rs. 50/PMT (National Calamity Contingent Duty-NCCD)
- (d) : Government had reduced the central Excise duty on petrol and diesel by Rs.2/ per litre effective 4 th  October, 2017. Further, the Central Government has requested the State Governments to make reduction in VAT imposed by them on Petrol and Diesel so  as  to  give  relief  to  the  consumers.    Accordingly,  3  state  Governments  namely, Gujarat, Maharashtra and Madhya Pradesh and 1 Union Territory (Chandigarh) have reduced the VAT on Petrol and Diesel.
- (e): Total amount collected in form of cess and tax by the Central Government during last three years is as follow:

Rs. Crore

| Name of Duty                                          |   2015-16 |   2016-17 |   2017-18 |
|-------------------------------------------------------|-----------|-----------|-----------|
| 1. Additional duty of excise on Motor Spirit          |     17300 |     21800 |     22000 |
| 2. Additional duty of excise on high speed diesel oil |     52239 |     59000 |     59250 |

| 3. Special additional duty of excise on motor spirit   | 18171   | 21000   | 21300   |
|--------------------------------------------------------|---------|---------|---------|

(f): During Financial year 2016-17 LPG (for supply to household domestic consumers) and Kerosene (for ultimate sale through public distribution system)attracted:

- -Nil Customs duty
- -Nil Excise duty; and
- -No cess
- ******

Annexure-I State-wise Taxes/VAT (in Rs./Ltr.)

|                   |                                          | Petrol (Rs./ltr)   | Diesel(Rs/ltr)    |
|-------------------|------------------------------------------|--------------------|-------------------|
| S.No.             | State                                    | As on 1st Dec. 17  | As on 1st Dec. 17 |
| 1.                | Andhra Pradesh                           | 19.87              | 14.64             |
| 2.                | Assam                                    | 16.73              | 11.24             |
| 3.                | Bihar                                    | 14.52              | 9.57              |
| 4.                | Chattisgarh                              | 14.92              | 13.00             |
| 5.                | Delhi                                    | 13.86              | 8.64              |
| 6.                | Goa                                      | 8.81               | 9.14              |
| 7.                | Gujarat                                  | 12.66              | 12.64             |
| 8.                | Haryana                                  | 13.47              | 8.57              |
| 9                 | Himachal Pradesh                         | 14.09              | 7.75              |
| 10.               | Jammu & Kashmir                          | 16.05              | 9.07              |
| 11.               | Jharkhand                                | 16.00              | 11.76             |
| 12.               | Karnataka                                | 15.49              | 9.12              |
| 13.               | Kerala                                   | 17.73              | 12.99             |
| 14.               | Madhya Pradesh                           | 18.39              | 10.95             |
| 15.               | Maharashtra- Mumbai, Thane & Navi Mumbai | 22.27              | 12.22             |
| 16.               | Maharashtra(Rest of State)               | 21.83              | 10.88             |
| 17.               | Meghalaya                                | 13.64              | 8.02              |
| 18.               | Mizoram                                  | 10.34              | 5.76              |
| 19.               | Nagaland                                 | 12.71              | 6.77              |
| 20                | Odisha                                   | 13.40              | 12.48             |
| 21.               | Punjab                                   | 18.54              | 8.58              |
| 22.               | Rajasthan                                | 16.99              | 12.28             |
| 23.               | Sikkim                                   | 15.95              | 8.51              |
| 24.               | Telengana                                | 18.25              | 13.04             |
| 25.               | Uttarakhand                              | 17.00              | 9.41              |
| 26.               | Tamil Nadu                               | 17.39              | 11.88             |
| 27.               | Uttar Pradesh                            | 16.74              | 9.41              |
| 28                | West Bengal                              | 14.56              | 9.17              |
| Union Territories | Union Territories                        |                    |                   |
| 1.                | Chandigarh                               | 11.41              | 6.77              |
| 2.                | Dadra Nagar Haveli                       | 12.28              | 8.69              |
| 3.                | Daman & Diu                              | 12.26              | 8.67              |
| 4.                | Punducherry                              | 12.96              | 9.82              |