Big part of Rs 3.4 lakh crore petroleum cess used for free vaccine, poor: Hardeep Puri – Times of India -India News Cart

NEW DELHI: The government earned Rs 3.4 lakh crore in financial year 2020-21 from central excise duty and cess on petroleum products, petroleum minister Hardeep Puri informed the Lok Sabha on Monday, adding that it used a large part of the money to provide free vaccines and relief to the poor through the PM Garib Kalyan Yojana, under which free ration was given to 80 crore beneficiaries during April-November in 2020 and May-June this year.
“The excise duty/cess collected (by the central government) from petrol is Rs 1,01,598 crore and from diesel is Rs 2,33,296 crore during the financial year 2020-21 (that ended on March 31 this year),” Puri said in a written reply to a question.

The minister said high taxes levied by states on petrol and diesel have caused the spurt in prices of these essential fuels. Madhya Pradesh levies the highest sales tax or VAT on petrol in the country, while Rajasthan has the highest tax on diesel, Puri said.
Taxes, both central and state, constitute up to 55% of the retail price of petrol and 50% of diesel.
While the central government levies a fixed excise duty of Rs 32.90/litre on petrol and Rs 31.80/litre on diesel, states charge an ad valorem rate of VAT that results in per litre tax going up when prices rise, and falling when rates come down.

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