- Government has increased road cess on petrol and diesel by Rs 8 per litre
- Excise duty has been hiked by Rs 2 per litre on petrol and Rs 5 per litre in diesel
- Taxes now comprise over 69 percent of the pump price of the two fuels
- Other countries where fuel is taxed over 60 percent are France, Germany, Italy Britain
The steepest ever hike in excise duty by Rs 13 per litre on diesel and Rs 10 per litre on petrol last night has catapulted India as the country with the highest taxes on fuel.
The government on Monday night issued a notification to increase road cess on petrol and diesel by Rs 8 per litre. Further, additional excise duty was also hiked by Rs 2 per litre on petrol and Rs 5 per litre in diesel. This was the steepest ever hike in duties on fuel in India and came on the same day as the state government in Delhi hiked value added tax which goes to its own kitty by Rs 7.1 per litre on diesel and Rs 1.6 per litre on petrol.
With these hikes, every litre of petrol in Delhi that currently retails at Rs 71.26 includes taxes of Rs 49.42 while for every litre of diesel at Rs 69.39 it is Rs 48.09. Taxes now comprise over 69 percent of the pump price of the two fuels, which is the highest in any part of the world.
Taxes account for 63 percent of the retail price of fuel in France and Germany, 64 percent in Italy, 62 percent in Britain, 53 percent in Spain, 47 percent in Japan, 33 percent in Canada and just 19 percent in the US. Till last year, taxes accounted for 50 percent of the retail price of the two fuels in India.
SOURCE: https://www.businesstoday.in/
Leave a Reply