[DigitalOne]

Just to keep the thread factually right and set the right context - Fuel taxes are both central (Excise) and state(VAT). In this unprecedented crisis almost every government (states and centre) have increased fuel taxes.

Source

Since March, tax-starved states such as Delhi, Tamil Nadu, Maharashtra, Goa, Karnataka, West Bengal, Assam, Punjab and Haryana have sharply hiked Value Added Taxes (VAT) on fuel in an effort to plug massive holes in revenue collections.

Over the past six years, both the Centre and states have sharply hiked fuel taxes even as crude oil plunged from over $100 per barrel levels in late 2014 to below $20 this summer.

[Sandeep500]

Originally Posted by Sree

Ours is a country where thousands walked/ cycled thousands of kilometres to reach home. The government is duty bound to take care of their interests more than those of a group of automobile enthusiasts. While, I don’t like being at the receiving end always, I understand the logic. And I am thankful for what I have.

Sir the problem is that successive govts. are making the system as such that there are lots of freebies given even to those who don't need them. Like even in normal times more than 40 percent of population is getting free atta(flour) and dals(lentils), free electricity, etc. It has made people stop working. I am talking about my state. This way they will become used to freebies and stop there Endeavour to grow both mentally and financially and ultimately become slave to the system.

Moreover when there was a freeze on fuel prices can anyone tell the money private fuel companies earned which otherwise they had to forgo as additional profit had been given to govt. coffers or to our poor and underprivileged brothers walking miles back to there homes. Even in such a huge crisis it will be big business houses that will profit at the cost of poor.

[anb]

Originally Posted by DigitalOne

Just to keep the thread factually right and set the right context - Fuel taxes are both central (Excise) and state(VAT). In this unprecedented crisis almost every government (states and centre) have increased fuel taxes.
[/url]

5 or 6 state governments hiked the VAT once or twice in the last six years. Some state govts haven't even changed the VAT in last six years. Centre hiked the excise duty by more than 900 percent in the last 6 years ( rs.3.4 to Rs 31 in the case of excise duty of diesel). How can one consider an increase of 20-30 percent of tax and an increase of more than 500 percent of tax on the same level ?

[lurker]

Govt should use this covid opportunity and pretense of lockdown resulting in inability of people to organize massive street protests to massively increase fuel prices and break the remaining oomph of so-called Indian economy and replace GST with fuel based taxes completely by next elections and after winning elections complain on how states are preventing abolishing GST. Win win scenario all around.

[DigitalOne]

Originally Posted by anb

5 or 6 state governments hiked the VAT once or twice in the last six years. Some state govts haven't even changed the VAT in last six years.

Fact: VAT as a % is calculated on top of Central Excise duty. Even if states don't increase VAT, they automatically get more revenue when Excise is increased.

Fact: State VAT revenues have increased around 50% in last 6 years. Centre's has increased a 100% .

Source

Since 2014, the Centre has raised levies over a dozen times, sending fuel tax revenues soaring from just Rs 1.15 lakh crore in 2014-15 to Rs 2.32 lakh crore in 2018-19.

As for state VAT hikes, they have resulted in collections going from Rs 1.37 lakh crore in 2014-15 to Rs 2.01 lakh crore in 2018-19.

I am NOT in favour of ANY tax hikes (centre and VAT). I dislike all governments equally .

Just giving out relevant information to have a more informed debate. Let's not turn team-bhp into a WhatsApp group .

[anb]

Originally Posted by DigitalOne

Fact: VAT as a % is calculated on top of Central Excise duty. Even if states don't increase VAT, they automatically get more revenue when Excise is increased.

Fact: State VAT revenues have increased around 50% in last 6 years. Centre's has increased a 100% .

Fact 1: Your statement was like " most states increased VAT like centre increase tax". I can't see you are sticking to that now. If the centre decrease tax, the amount collected through VAT will automatically come down. So it all depends on the policy of centre govt.

Fact 2: Centre govt increased excise duty by more than 900 percent for diesel by this June 2020.The FACT you shared here " centre tax has increase is only100 percent", is not a FACT. The source you mentioned here doesn't tell that rate of tax increase is only 100 percent. The total tax collection you have given is for 5 years. It doesn't account for the recent 13 rupees hike in "special"excise duty during May 2020. The increase in tax rates of June 2020 in comparison to May 2014 is much higher than what you claim . Is it only 100% ?

[tbppjpr]

Putting here fuel price and tax breakup data (as on 6th May 2020)

It gives us an idea of how much taxes are being charged on the fuel.

Taxes and fuel prices are further increased in June 2020.









Source


Let's watch his old advertisement and have a laugh in the current time.

https://www.facebook.com/aajkakhulas...15850438810552

[DigitalOne]

Originally Posted by anb

Fact 1: Your statement was like " most states increased VAT like centre increase tax". I can't see you are sticking to that now. If the centre decrease tax, the amount collected through VAT will automatically come down. So it all depends on the policy of centre govt.

When I meant "almost" all states have increased VAT, I meant in terms of number of states, not in the degree of increase.

Fact 2: Centre govt increased excise duty by more than 900 percent for diesel by this June 2020.The FACT you shared here " centre tax has increase is only100 percent", is not a FACT. The source you mentioned here doesn't tell that rate of tax increase is only 100 percent. The total tax collection you have given is for 5 years. It doesn't account for the recent 13 rupees hike in "special"excise duty during May 2020. The increase in tax rates of June 2020 in comparison to May 2014 is much higher than what you claim . Is it only 100% ?

I have made it clear that it is tax revenues and not rates.

Fact: State VAT revenues have increased around 50% in last 6 years. Centre's has increased a 100%

Since 2014, the Centre has raised levies over a dozen times, sending fuel tax revenues soaring from just Rs 1.15 lakh crore in 2014-15 to Rs 2.32 lakh crore in 2018-19.

From 1.15 lakh crore to 2.32 lakh crore is 100% revenue increase.

I have not made any future claims at all, just quoted the numbers available in the linked article till 2018-19.

Yes, tax revenues will increase because of the recent tax rate increases. But how much it will increase is given in the linked article (I have not quoted it because it is just estimates).

[ramzsys]

Crude being first in the list of imports, a high tax is a way to keep a check from surging import bills. This is from the collective perspective.

Personally I wish there was a pricing mechanism where if i fill diesel for the tractor for ploughing the fields, i get it at lower rate of tax and for the leisure trip at usual rates. Corruption is in the bloodline of the bureaucracy so such schematic would only lead to tax evasion, just like how Mumbai and Bangalore 'farmers' show their income in crores.

Perks of being born in a third world country with an exploding population which keep fighting for every resource.

[anb]

Originally Posted by DigitalOne

When I meant "almost" all states have increased VAT, I meant in terms of number of states, not in the degree of increase.
I have not made any future claims at all, just quoted the numbers available in the linked article till 2018-19.
.

My post was about hike in Petrol/diesel tax rate. The total tax revenue also depends upon consumption of Petrol/diesel. So total revenue will not give a clear picture. Moreover, we are concern about the present situation, not 2018-19 since the biggest hike in tax happened in May 2020, a massive increase of Rs.13. How can you ignore that?

In the state of Kerala, VAT on diesel was 20% and petroll was 26 % during 2014. Now it is 23.84% and 30.37%. The increase in VAT is less than 20% over 6 years.

[ABHI_1512]

The funny part of the recent excise hike is in the finer details. People thinking that states also got the benefit of the recent excise hike through vat would be surprised to know that the states almost got nothing. And therefore, the need for the states to raise the vat amount.

Of the recent hikes of ₹13 on diesel and ₹10 on petrol, the critical component is the amount of road cess which is ₹8. Now this entire ₹8 is directly going to the central coffers and the states are getting nothing. The states are just getting the vat component out of the balance amount which is minuscule.

As I said this before, this organised loot during these pandemic times is the least that the authorities could have avoided to mitigate the hardships of the ordinary people who are already stressed. At least some part of the gains made by the low crude prices could have been passed on easily !!

[Dry Ice]

I wonder if someone calculates the net tax paid for owning a vehicle over the years, how much would it turn out to be.

Buying - roadtax, gst on various charges
Operating - taxes on petrol, diesel, gst for insurance renewals, gst for puc, tolls for using roads etc.
Maintenance - gst on service/parts ?

I guess we don't want to know, otherwise it will be clear there is no economic sense for a salaried person in keeping a car anymore.

[wildsdi5530]

Originally Posted by ramzsys

Personally I wish there was a pricing mechanism where if i fill diesel for the tractor for ploughing the fields, i get it at lower rate of tax and for the leisure trip at usual rates.

Why should you get fuel for your tractor at a lower price when I have to pay higher to transport (Merchants) what you produce and sell to me? Or higher prices when I deliver the groceries (delivery boys)?
Do you want to tax me (general public) more just because I'm not using it for a business? Just because my trip is not earning me any money?

[DigitalOne]

Originally Posted by anb

My post was about hike in Petrol/diesel tax rate. The total tax revenue also depends upon consumption of Petrol/diesel. So total revenue will not give a clear picture. Moreover, we are concern about the present situation, not 2018-19 since the biggest hike in tax happened in May 2020, a massive increase of Rs.13. How can you ignore that?

Sure. And I expressed my displeasure about any fuel tax hikes. Haven't ignored anything.

The figures are quoted only till 2018-19 because that article quoted the same. Couldn't google out the 2019-20 revenue figures.

In the state of Kerala, VAT on diesel was 20% and petroll was 26 % during 2014. Now it is 23.84% and 30.37%. The increase in VAT is less than 20% over 6 years.

Thanks for the info!! Good to know.

Also, came to know from the post 6862 (The Official Fuel Prices Thread)above, that Delhi government increased VAT on diesel on 5th May from 16% to 30%.

[anb]

Originally Posted by DigitalOne

Sure. And I expressed my displeasure about any fuel tax hikes. Haven't ignored anything.

The figures are quoted only till 2018-19 because that article quoted the same. Couldn't google out the 2019-20 revenue figures.

Total tax revenue from fuel for 2020 will be lower than previously years due to reduction in fuel consumption as a result of lockdown. That's why I keep posting what matters is the rate of tax increase, not total tax revenue

Delhi always had lower diesel prices than other states. Now they hiked diesel prices to similar levels.