Are you are looking for tax on petrol and diesel in India state wise? If yes then you should definitely look into this blog for complete information about state wise tax on petrol in India.
The variation in retail fuel costs between the two cities is attributable to the varying tax rates imposed on identical products by the separate state governments. In this blog, we’ll look at the state wise tax on petrol in India, tax components in the price structure of gasoline and diesel, as well as the differences between states and key changes in the taxation of these goods in recent years. We also talk about how retail pricing has changed over the last few years and how they compare to global crude oil prices. Also, the information about the tax on petrol and diesel in India state wise.
What is the tax percentage of Tax on petrol and diesel in India state wise?
The retail prices of petrol and diesel in India are revised on a daily basis by public sector Oil Marketing Companies (OMCs) in response to variations in the price of global crude oil. The base price set by OMCs and the freight price are included in the price paid to dealers. As of now, the price charged to dealer’s accounts for 42 percent of the retail price for petrol and 49 percent of the retail price for diesel.
- Taxes considered for calculating the effective tax rate for gasoline and diesel comprise sales tax, VAT, Cess, Additional tax, and Surcharge, among others, which are recoverable in price as taxes omitting Central levies and CST.
- In addition to the foregoing taxes, the state governments of Bihar and West Bengal levy an additional tax/surcharge on VAT of 30 percent and 20 percent, respectively, which is non-recoverable.
- The effective tax rate was calculated using the percent of total taxes applied to retail selling prices excluding these total taxes.
- In Arunachal Pradesh, Delhi, Gujarat, Haryana, Madhya Pradesh, Punjab, Chandigarh, Puducherry, Andaman & Nicobar, Meghalaya, Dadar Nagar Haveli, and Daman & Diu, VAT/Sales Tax is levied on Dealer’s commission at relevant rates.
Following the central government’s decision to decrease the excise duty on fuel and diesel by Rs. 5 and Rs. 10, the central government said in an official statement that 22 states had reduced the VAT on petrol and diesel, while 14 have not.
Karnataka has seen the largest reductions in petrol prices, followed by Puducherry and Mizoram. Petrol prices have decreased by Rs 13.35, Rs 12.85, and Rs 12.62 in these states, respectively.
State wise tax on petrol in India
State |
Sale Tax/VAT on Petrol |
|
Andaman & Nicobar Islands |
6% |
|
Andhra Pradesh |
31% VAT + Rs 4/litre VAT+Rs 1/litre Road Development Cess and VAT |
|
Arunachal Pradesh |
20% |
|
Assam |
32.66% or Rs 22.63/litre, whichever is higher |
|
Bihar |
26% or Rs 16.65/litre whichever is higher (30% Surcharge on VAT which cannot be recovered) |
|
Chandigarh |
Rs.10/KL cess + 22.45% or Rs 12.58/litre whichever is higher |
|
Chattisgarh |
25% VAT + Rs 2/litre VAT |
State wise tax on petrol in India
|
Dadra and Nagar Haveli and Daman and Diu |
20% |
|
Delhi |
30% VAT |
|
Goa |
27% VAT + 0.5% Green cess |
|
Gujrat |
20.1% VAT+ 4% Cess on Town Rate & VAT |
|
Haryana |
25% or Rs 15.62/litre whichever is higher as VAT+5% additional tax on VAT |
|
Himachal Pradesh |
25% or Rs 15.50/litre- whichever is higher |
|
Jammu Kashmir |
24% MST+ Rs 5/litre employment cess, Reduction of Rs 0.50/litre |
|
Jharkhand |
22% on the sale price or Rs 17 per litre, whichever is higher + Cess of Rs 1.00 per Litre |
State wise tax on petrol in India
|
Karnataka |
35% Sales Tax |
|
Kerala |
30.08% sales tax+ Rs 1/litre additional sales tax + 1% cess |
|
Ladakh |
24% MST+ Rs 5/litre employment cess, Reduction of Rs 2.5/litre |
|
Lakshadweep |
NIL |
|
Madhya Pradesh |
33 % VAT + Rs 4.5/litre VAT+1%Cess |
|
Maharashtra – Mumbai, Thane & Navi Mumbai |
26% VAT+ Rs 10.12/litre additional tax |
|
Maharashtra (Rest of State) |
25% VAT+ Rs 10.12/litre additional tax |
|
Manipur |
36.50% VAT |
Keep reading to know more about tax on petrol and diesel in India state wise.
State wise tax on petrol in India
|
Meghalaya |
20% or Rs 15.00/litre- whichever is higher (Rs 0.10/litre pollution surcharge) |
|
Mizoram |
25% VAT |
|
Nagaland |
25% VAT or Rs.16.04/litre whichever is higher +5% surcharge + Rs 2.00/litre as the road maintenance cess |
|
Odisha |
32% VAT |
|
Puducherry |
26% VAT |
|
Punjab |
Rs 2,050/KL (cess)+ Rs 0.10 per litre (Urban Transport Fund) + Rs .25 per litre (Special Infrastructure Development Fee) +24.79% VAT+10% additional tax on VAT |
|
Rajasthan |
36% VAT+Rs 1,500/KL road development cess |
|
Sikkim |
25.25% VAT+ Rs 3,000/KL cess |
State wise tax on petrol in India
| Tamil Nadu |
15% + Rs 13.02 per litre |
|
Telangana |
35.20% VAT |
|
Tripura |
25% VAT+ 3% Tripura Road Development Cess |
|
Uttar Pradesh |
26.80% or Rs 18.74/litre whichever is higher |
|
Uttarakhand |
25% or Rs 19/litre whichever is greater |
| 25% or Rs 13.12/litre whichever is higher as sales tax+ Rs 1,000/KL cess- Rs 17/KL exemption – Rs 1,000/KL sales tax rebate (20% Additional tax on VAT which cannot be recovered) | |
What is the impact of tax fluctuation on economic growth?
Small tax hikes on petrol and diesel have been found to significantly enhance the environment due to reduced consumption. But like with other public interventions, energy price rises can jeopardize equitable goals.
Providing an equity-efficiency trade-off that economists are familiar with and variety of tax on petrol and diesel in India state wise. Though the equity or distributional impact is estimated to vary between and within countries depending on social, geographic, climatic, and economic conditions. As well as the pattern of energy use in households, there is general agreement that poor households are more affected by energy price increases.
Because they spend a larger proportion of their income on energy and energy services. The recommended policy solution to remedy this trade-off is to combine a regressive tax on gasoline and diesel with progressive revenue transfer among impoverished households.
Now you are aware of the state wise tax on petrol in India. That’s all about the topic.
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