Central Excise duty on diesel has increased by over 380% in the last 3 years while the excise duty on petrol has increased by over 120%. The revenue through central excise duty on petrol & diesel has more than doubled between 2013-14 and 2015-16.
Prices of Petrol & Diesel have always been an important part of the public discourse on price rise. The BJP criticized the government for increase in prices of Petrol & Diesel when it was in the opposition. It is now the turn of the Congress to do the same. Data shared by the government indicates that the excise duty on diesel increased by over 380% in the last 3 years while it increased by over 120% on petrol during this period. The government’s revenue through levy of excise duty on petrol/diesel more than doubled in the two year period between 2013-14 and 2015-16 owing to the increase in excise duty.
Excise Duty on Diesel increased from Rs 3.56 to Rs 17.33 in 3 years
The excise duty on unbranded diesel was Rs 3.56 per litre on 1st April, 2014 just before the BJP came to power. The excise duty on unbranded petrol was Rs 9.48 per litre on the same date. Since then, it has been revised 11 times during the last 3 years. From Rs 3.56 per litre, it is currently Rs 17.33 per litre, an increase of ober 380% in 3 years on diesel. On Petrol, it increased from Rs 9.48 per litre to 21.48 per litre. On four different occasions, the excise duty on diesel was increased by Rs 2 or more per litre while on petrol, it was increased by Rs 2 or more per litre on three different occasions.
Even States increased VAT/Sales Tax on Petrol & Diesel
It is not just the central government that increased the excise duty, even state governments have increased VAT/Sales tax on petrol & diesel in the last 3 years. The VAT on diesel was more than 20% in only 10 states in April 2014. As of March 2017, the VAT on diesel is more than 20% in 16 different states. The highest VAT percentage on diesel was 25% in Chhattisgarh in April 2014. In March 2017, the highest VAT percentage on diesel is 31.31% in Madhya Pradesh. The VAT on petrol was at least 25% in 17 different states in April 2014. It is now at least 25% in 25 different states. The highest VAT on petrol was 33.06% in Punjab in April 2014. As of March 2017, the highest VAT percentage is 39.75% in Madhya Pradesh.
Revenue through Excise Duty has more than doubled in 2 years
Revenue through excise duty on petrol & diesel has more than doubled from 2013-14 to 2015-16. From Rs 77982 crore in 2013-14, the excise duty collections on petrol & diesel increased to Rs 178591 crore in 2015-16. The 2016-17 collections will surpass the the previous going by the collections during the first 9 months. The VAT/sales tax collection on petrol & diesel increased only marginally in the states. From Rs 129045 crore in 2013-14, it increased to Rs 142848 in 2015-16. Though the VAT percentage on both petrol & diesel has increased in the last 3 years, the collections in states have increased only marginally since the base price of petrol & diesel has substantially decreased in the last 3 years on account of reduction in global crude oil prices.
Only 4 States earn more than 10000 crore through VAT on Petrol & Diesel
Of all the states, Maharashtra earns the maximum revenue through VAT on petrol & diesel. Maharashtra has consistently earned more than Rs 19000 crore since 2013-14. Only four states (Maharashtra, Gujarat, Uttar Pradesh & Tamil Nadu) have earned more than Rs 10000 crore through VAT on petrol & diesel in each of the years since 2013-14. Andhra Pradesh before bifurcation into Telangana & Andhra Pradesha also used to earn more than Rs 10000 crore.
The total contribution of petroleum products to the central & state exchequer has crossed Rs 4 lakh crore in 2015-16. Out of the 4 lakh crore in 2015-16, central excise duty and state VAT account for more than 3.2 lakh crore. Even in 2016-17, the total contribution is set to cross Rs 4 lakh crore.