Lok Sabha Question No. 183 (STARRED), answered on 2021-03-08
Subject: Taxes on Fuel
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Hanuman Beniwal, Rajiv Ranjan (Lalan) Singh

## LOK SABHA STARRED QUESTION NO. 183 TO BE ANSWERED ON 8 TH  MARCH, 2021

## Taxes on Fuel

## †*183. SHRI HANUMAN BENIWAL: SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH :

## पेोलयम और ाक ृ तक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) whether in spite of decline in the prices of crude oil in the international market, the prices of  petrol  and  diesel  are  continuously  rising  day  by  day  across  the  country  including Rajasthan;

(b) if so, the reasons therefor;

(c)  the  type  of  taxes  being  levied  by  the  Government  on  petrol  and  diesel  at  present  and amount of each of these taxes being levied;

(d) the details of new taxes levied on petrol and diesel during the last two years;

(e) the details of increase or reduction in each of the taxes being levied on petrol and diesel during the last two years; and

(f)  whether  the  Government  proposes  to  reduce  the  amount  of  various  types  of  taxes  and make  various  other  efforts  to  reduce  the  increasing  prices  of  petrol  and  diesel,  if  so,  the details thereof and if not, the reasons therefor?

## ANSWER

## पेोलयम और ाक ृ तक गैस मंी ( ी धम धान )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

Statement referred to in reply to parts (a) to (f) of Lok Sabha Starred Question No. 183 asked by Shri Hanuman Beniwal and Shri Rajiv Ranjan Singh a lias Lalan Singh to be answered on 8 th March, 2021 regarding 'Taxes on Fuel '.

- (a) & (b): Prices  of  petrol  and  diesel  have  been  made  market-determined  by  the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel  in  line  with  their  international  product  prices,  exchange  rate,  tax  structure,  inland freight and other cost elements.  The prices of petroleum products in the country are linked to the price of respective products in the international market.
- (c) The details of taxes levied on petrol and diesel are given below:
- (i) Customs  duty: The  Basic  Customs  Duty  (BCD)  on  petrol  and  diesel  is  given below:
- (ii) Excise duty: The  details  of  the  total  incidence  of  excise  duty  (including  Basic Excise duty, Cesses and Surcharge) are as under:

| Particulars                 | Basic Customs Duty   |
|-----------------------------|----------------------|
| Petrol                      | 2.5%                 |
| Petrol (branded)            | 2.5%                 |
| High Speed Diesel           | 2.5%                 |
| High Speed Diesel (branded) | 2.5%                 |

| Commodity          | BED            | SAED           | RIC            | AIDC           | Total          |
|--------------------|----------------|----------------|----------------|----------------|----------------|
|                    | (Rs per litre) | (Rs per litre) | (Rs per litre) | (Rs per litre) | (Rs per litre) |
| Petrol (unbranded) | 1.40           | 11             | 18             | 2.5            | 32.90          |
| Petrol (branded)   | 2.60           | 11             | 18             | 2.5            | 34.10          |
| Diesel (unbranded) | 1.80           | 8              | 18             | 4.0            | 31.80          |
| Diesel (branded)   | 4.20           | 8              | 18             | 4.0            | 34.20          |

BED: Basic Excise Duty; SAED: Special Additional Excise Duty; RIC: Road and Infrastructure Cess; AIDC: Agriculture Infrastructure and Development Cess.

- (iii) VAT: State  wise actual  rates  of  VAT  on  petrol  and  diesel  as  on  1 st March 2021 are given as Annexure-1 .
- (d) Agriculture Infrastructure and Development Cess (AIDC) at the rate of Rs. 2.5 per litre  for  petrol  and  Rs.  4  per  litre  on  diesel  has  been  imposed  vide  Finance  Bill,  2021. Simultaneously,  basic  excise  duty  and  special  additional  excise  duty  have  been  reduced. Thus, in net the total duty incidence remains unchanged.
- (e) The details of changes in central excise duty on petrol and diesel during the last two years is given as Annexure-II .
- (f) The rate of taxes on petrol and diesel is calibrated so that the interest of consumers is protected and at the same time the requirement of fiscal resources for infrastructure and other development expenditure is also taken care of.

Annexure-I

Annexure referred to in reply to part (c) of Lok Sabha Starred Question No. 183 asked by  Shri  Hanuman  Beniwal  and  Shri  Rajiv  Ranjan  Singh  a lias Lalan  Singh  to  be answered on 8 th March, 2021 regarding 'Taxes on Fuel '.

## Statement of Actual rates of Sales tax/ VAT levied by various States/ UTs as on 01.03.2021

|   Sr. No | State                                    | Petrol                                                                                        | Diesel                                                                                        |
|----------|------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|        1 | Andaman &Nicobar Islands                 | 6%                                                                                            | 6%                                                                                            |
|        2 | Andhra Pradesh                           | 31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                     | 22.25% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                  |
|        3 | Arunachal Pradesh                        | 20.00%                                                                                        | 12.50%                                                                                        |
|        4 | Assam                                    | 32.66% or Rs.22.63 per litre whichever is higher as VAT minus Rebate of Rs.5 per Litre        | 23.66% or Rs.17.45 per litre whichever is higher as VAT minus Rebate of Rs.5 per Litre        |
|        5 | Bihar                                    | 26% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)         | 19% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)         |
|        6 | Chandigarh                               | Rs.10/KL cess +22.45% or Rs.12.58/Litre whichever is higher                                   | Rs.10/KL cess + 14.02% or Rs.7.63/Litre whichever is higher                                   |
|        7 | Chhattisgarh                             | 25% VAT + Rs.2/litre VAT                                                                      | 25% VAT + Rs.1/litre VAT                                                                      |
|        8 | Dadra and Nagar Haveli and Daman and Diu | 20% VAT                                                                                       | 20% VAT                                                                                       |
|        9 | Delhi                                    | 30% VAT                                                                                       | Rs.250/KL air ambience charges + 16.75% VAT                                                   |
|       10 | Goa                                      | 27% VAT + 0.5% Green cess                                                                     | 23% VAT + 0.5% Green cess                                                                     |
|       11 | Gujarat                                  | 20.1% VAT+ 4% Cess on Town Rate &VAT                                                          | 20.2% VAT + 4 %Cess on Town Rate&VAT                                                          |
|       12 | Haryana                                  | 25% or Rs.15.62/litre whichever is higher as VAT+5% additional tax on VAT                     | 16.40% VAT or Rs.10.08/litre whichever is higher as VAT+5% additional tax on VAT              |
|       13 | Himachal Pradesh                         | 25% or Rs 15.50/Litre- whichever is higher                                                    | 14% or Rs 9.00/Litre- whichever is higher                                                     |
|       14 | Jammu &Kashmir                           | 24% MST+ Rs.5/Litre employment cess, Reduction of Rs.0.50/Litre                               | 16% MST+ Rs.1.50/Litre employment cess                                                        |
|       15 | Jharkhand                                | 22% on the sale price or Rs. 17.00 per litre , which ever is higher + Cess of Rs 1.00 per Ltr | 22% on the sale price or Rs. 12.50 per litre , which ever is higher + Cess of Rs 1.00 per Ltr |
|       16 | Karnataka                                | 35% sales tax                                                                                 | 24% sales tax                                                                                 |
|       17 | Kerala                                   | 30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess                                   | 22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess                                   |

|   Sr. No | State                                    | Petrol                                                                                                                                                                     | Diesel                                                                                                                                                 |
|----------|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|       18 | Ladakh                                   | 24% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre                                                                                                             | 16% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre                                                                                       |
|       19 | Lakshadweep                              | Nil                                                                                                                                                                        | Nil                                                                                                                                                    |
|       20 | Madhya Pradesh                           | 33 %VAT+Rs.4.5/litre VAT+1%Cess                                                                                                                                            | 23% VAT+ Rs.3/litre VAT+1% Cess                                                                                                                        |
|       21 | Maharashtra - Mumbai, Thane &Navi Mumbai | 26% VAT+ Rs.10.12/Litre additional tax                                                                                                                                     | 24% VAT+ Rs.3.00/Litre additional tax                                                                                                                  |
|       22 | Maharashtra (Rest of State)              | 25% VAT+ Rs.10.12/Litre additional tax                                                                                                                                     | 21% VAT+ Rs.3.00/Litre additional tax                                                                                                                  |
|       23 | Manipur                                  | 36.50% VAT                                                                                                                                                                 | 22.50% VAT                                                                                                                                             |
|       24 | Meghalaya                                | 20% or Rs15.00/Litre- whichever is higher (2% surcharge leviable only on advalorem tax)                                                                                    | 12% or Rs9.00/Litre- whichever is higher (2% surcharge leviable only on advalorem tax)                                                                 |
|       25 | Mizoram                                  | 25% VAT                                                                                                                                                                    | 14.5% VAT                                                                                                                                              |
|       26 | Nagaland                                 | 25% VAT or Rs. 16.04/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess                                                                      | 16.50% VAT or Rs. 10.51/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess                                               |
|       27 | Odisha                                   | 32% VAT                                                                                                                                                                    | 28% VAT                                                                                                                                                |
|       28 | Puducherry                               | 26% VAT                                                                                                                                                                    | 17.75% VAT                                                                                                                                             |
|       29 | Punjab                                   | Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) +24.79% VAT+10% additional tax on VAT                                                                          | Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) + 15.94% VAT+10% additional tax on VAT                                                    |
|       30 | Rajasthan                                | 36% VAT+Rs 1500/KL road development cess                                                                                                                                   | 26% VAT+ Rs.1750/KL road development cess                                                                                                              |
|       31 | Sikkim                                   | 25.25% VAT+ Rs.3000/KL cess                                                                                                                                                | 14.75% VAT + Rs.2500/KL cess                                                                                                                           |
|       32 | Tamil Nadu                               | 15% + Rs.13.02 per litre                                                                                                                                                   | 11% + Rs.9.62 per litre                                                                                                                                |
|       33 | Telangana                                | 35.20% VAT                                                                                                                                                                 | 27% VAT                                                                                                                                                |
|       34 | Tripura                                  | 25% VAT+ 3% Tripura Road Development Cess                                                                                                                                  | 16.50% VAT+ 3% Tripura Road Development Cess                                                                                                           |
|       35 | Uttar Pradesh                            | 26.80% or Rs 18.74/Litre whichever is higher                                                                                                                               | 17.48% or Rs 10.41/Litre whichever is higher                                                                                                           |
|       36 | Uttarakhand                              | 25% or Rs 19 Per Ltr whichever is greater                                                                                                                                  | 17.48% or Rs Rs 10.41 Per Ltr whichever is greater                                                                                                     |
|       37 | West Bengal                              | 25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess- Rs.17/KL exemption - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax) | 17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax) |

Annexure- II

Annexure referred to in reply to parts (e) of Lok Sabha Starred Question No. 183 asked by Shri Hanuman Beniwal and Shri Rajiv Ranjan Singh a lias Lalan Singh to be answered on 8 th March, 2021 regarding 'Taxes on Fuel '.

## Details of changes in central excise duty on petrol and diesel during the last two years

| Period                  | Central Excise duty                                                     | Central Excise duty                                                      | Central Excise duty                                                  | Central Excise duty                                                  |
|-------------------------|-------------------------------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|
|                         | Petrol (unbranded)                                                      | Petrol (branded)                                                         | Diesel(unbranded)                                                    | Diesel(branded)                                                      |
| 05.10.2018 - 05.07.2019 | Rs. 17.98 per litre [Rs.2.98 BED + Rs.7 SAED + Rs.8 RIC]                | Rs.19.16 per litre [Rs.4.16 BED + Rs.7 SAED + Rs.8 RIC]                  | Rs.13.83 per litre [Rs.4.83 BED + Rs.1 SAED + Rs.8 RIC]              | Rs.17.69 per litre [Rs.7.19 BED + Rs.1 SAED + Rs.8 RIC]              |
| 06.07.2019 - 13.03.2020 | Rs. 19.98 per litre [Rs.2.98 BED + Rs.8 SAED + Rs.9 RIC]                | Rs.21.16 per litre [Rs.4.16 BED + Rs.8 SAED + Rs.9 RIC]                  | Rs.15.83 per litre [Rs.4.83 BED + Rs.2 SAED + Rs.9 RIC]              | Rs.18.19 per litre [Rs.7.19 BED + Rs.2 SAED + Rs.9 RIC]              |
| 14.03.2020 - 05.05.2020 | Rs. 22.98 per litre [Rs.2.98 BED + Rs.10 SAED + Rs.10 RIC]              | Rs.24.16 per litre [Rs.4.16 BED + Rs.10 SAED + Rs.10 RIC]                | Rs.18.83 per litre [Rs.4.83 BED + Rs.4 SAED + Rs.10 RIC]             | Rs.21.19 per litre [Rs.7.19 BED + Rs.4 SAED + Rs.10 RIC]             |
| 06.05.2020 - 01.02.2021 | Rs. 32.98 per litre [Rs.2.98 BED + Rs.12 SAED + Rs.18 RIC]              | Rs.34.16 per litre [Rs.4.16 BED + Rs.12 SAED + Rs.18 RIC]                | Rs.31.83 per litre [Rs.4.83 BED + Rs.9 SAED + Rs.18 RIC]             | Rs.34.19 per litre [Rs.7.19 BED + Rs.9 SAED + Rs.18 RIC]             |
| W.e.f.- 02.02.2021      | Rs. 32.90per litre [Rs.1.40 BED + Rs.11 SAED + Rs.18 RIC+ Rs. 2.5 AIDC] | Rs.34.10 per litre [Rs.2.60 BED + Rs.11 SAED + Rs.18 RIC + Rs. 2.5 AIDC] | Rs.31.80 per litre [Rs.1.80 BED + Rs.8 SAED + Rs.18 RIC +Rs. 4 AIDC] | Rs.34.20 per litre [Rs.4.20 BED + Rs.8 SAED + Rs.18 RIC+ Rs. 4 AIDC] |

-  SAED - Special additional excise duty
-  BED - Basic Excise Duty
-  RICRoad & Infrastructure Cess

AIDCAgriculture Infrastructure and Development Cess