Bengaluru: The increase in gasoline and diesel prices may make motorists and transporters who are worried, but the state government laughs to the bank because spiral has helped its pundi swollen almost 50 percent.
In the first half of this fiscal year, which ended on September 30, the government obtained a 9,720 crore from taxes that were collected on gasoline and diesel, which was 48% more than RS 6,549 Crore which was stored during the same period.
year.
If the trend of rising fuel prices continues or even if they stabilize at the current level, which seems more likely, government revenue will easily cross RS 20,000 crore at the end of the current fiscal, according to senior officials from the commercial tax department, which does not want to be named.
“This department also expects increased fuel consumption in the coming days because all the covid-19 sidewalks have been appointed,” added the official.
Because the sales tax is collected by the state government in gasoline and diesel is AD Valorem in nature, which means calculated at the price of the fuel market that applies, state revenues increase every time the price of hiking or consumption rises.
Country publication 35 percent tax on gasoline and 24 percent on diesel.
At this level, the government on Thursday was collected around RS 28 as a tax on one liter of gasoline and Rs 21 on Diesel.
In Karnataka, the price of fuel has touched the highest all time with gasoline sold at Rs 109-112 per liter and diesel at RS 99-101.
The price of increased fuel has helped the government redeem income losses that occurred during last year’s locking and earlier this year.
Fuel sales are severe in the fiscal year 2020-21 without public transportation for most of 2020 and from March to June this year.
Although locking limitations were removed gradually from July 1, the sale of fuel began to take only on August 2021, when all travel restrictions and transportation were appointed.
The government lost nearly RS 5,000 crore because of the locking for 2020 and 2021.
While the increase in fuel consumption contributed to this growth, the increase in fuel prices since November also made the government richer.
Some experts feel an increase in income and encourage estimates for the remaining half of the fiscal year can help the Head of the Bukavaraj Minister Bommai cut fuel tax, something he believed last week.
Bommai said he would think of reducing gasoline and diesel prices after October 30 bypolls after assessing state financial conditions.
He has been under pressure to cut taxes since his partner Tamil Nadu MK Stalin reduces the price of gasoline by RS 3.
“These figures indicate that the government makes a winding increase while people suffer.
CM must defend his words and trim state taxes on Fuel immediately as he promised.
Otherwise, people would think it was just a trick before Bypolls, “said B Ramalinga Reddy, the President of the KPCC workers.