Fill your vehicle tank as soon as possible, because the central government is preparing to add inflation in the festive season soon. Petrol-diesel prices can be increased up to six rupees. The central government is going to increase Excise Duty on both these products. Earlier in May 2020, the government had increased duty on petrol by Rs 10 per liter and on diesel by Rs 13 per liter.
This will be costly
The government is fighting a war against the Corona virus. In such a situation, this excise duty is being considered to increase the resources. According to reports, the economy has suffered a major setback due to the epidemic. In such a situation, funds are needed to revive the economy and make up for the loss. The government can also announce another relief package. Funds will be required for all these, which will be met by excise duty on petrol and diesel.
The burden will be less on the general public
According to media reports, in order to reduce its burden on the general public, it is working on some formula, so that the government gets a separate income. It is believed that the price of petrol and diesel should have been cheaper after the price of crude oil fell. Now that will not happen. Internationally, crude oil has fallen from $ 45 per barrel to $ 40 per barrel. The government wants to take advantage of this.
Government gains so much on increase of duty of 1 rupee
Every rupee increase in the excise duty of petrol and diesel increases the central government exchequer by Rs 13,000-14,000 crore annually. In fact, India buys about 82 percent of its crude. In such a situation, the current account deficit (CAD) of the country may also decrease due to the decrease in crude prices.
Now Rs 32 tax on petrol, Rs 31 on diesel
Currently, out of the petrol we buy, we pay only Rs 31.83 per liter tax. There is a tax of Rs 31.83 on every liter of diesel purchased. Before May 2014, there was a total tax of Rs 9.48 per liter on petrol. At the same time, diesel was taxed at Rs 3.56 per liter. Customers have not got the benefit of cheap crude. Apart from this, the state governments have also given big VAT for earning on their behalf.