India pandemic economy Government India

How the Centre is using oil price decline to reset expectations and boost revenues

Reading now: 983
www.livemint.com

₹19.98 per litre. This is now ₹32.98. Effectively, it took the gains from a lower base price as additional excise.At this point, the Centre needs all the revenues it can get.

The pandemic has dented all its revenue streams, while adding new expenditure and future liabilities. About 20% of the Centre’s tax revenues come from various taxes on fuel, with the big one being excise.States are in a similar situation.

In recent years, even states have earned 18-20% of their tax revenues from fuel products. Moreover, these revenues are outside the ambit of the Goods and Services Tax (GST), and don’t have to be shared with the Centre.This dual, and high, taxation makes fuel one of the most-heavily taxed items in the economy.

Read more on livemint.com
The website covid-19.rehab is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA