Re: Effect of Electric Vehicles on the government's revenue? Fuel taxes contribute to 2% of GDP Quote:
Originally Posted by Stribog
Our oil import bill is approx Rs 7.5L crore ($ 100 bn) and is the single largest contributor to forex outflow. To put things into perspective
1 - Our defense budget is $ 65 Bn
2 - Our MNREGA budget is $ 10 Bn
3 - Our entire capex budget is $ 90 Bn
In sum, we can pay off our capex budget + Mnrega and have a little to spare (forex savings) just on the back of our import bill.
Plus our dependencies on external suppliers goes down.
It eases infrastructural logjams in shipping these to the last mile pumps (though this is a fraction of the costs involved)
Let me put it this way, if you had a chance to earn Rs 100 and earn rebate of Rs 50 for a net earning of Rs 50 or simply earn Rs 100 and not get a rebate, which would you choose?
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I am sorry, but I guess you mean to say that the GoI will save 100 Billion USD by the transition to EVs (instead of fossil fuel)
In reality, the GoI has been selling fossil fuels at such a price that the profit from selling fossil fuels was covering the entire defense budgets and MNREGA budgets too.
If fossil fuels are no longer being sold, will the GoI stop spending on defense or MNREGA? If not, how those expenses are going to be managed?
The only logical options are
1) raise personal income taxes (very likely)/corporate taxes (unlikely)
2) tax agricultural income (unlikely)
3) raise GST (likely)
4) tax EV, batteries, charging infrastructure etc (very very likely)
Also, unless all the EV batteries and infrastructure equipments are manufactured in India from the scratch, we will still lose foreign exchanging amounting to billions of USD by purchasing them.
The Government will always be the winner as it can change the rules in the middle of the game.
So we will end up paying more taxes some way or the other, but it might still work out to be a tad cheaper than what we now pay for fossil fuels.
Last edited by Geta : 25th October 2021 at 15:53.
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