With Rs 4.13 lakh crore debt, the govt. is trying to boost its revenues by hiking the cess on petrol.
MUMBAI: Did we even speculate that we are paying ‘153%’ in taxes over the per litre price at which petrol is sold by refineries to oil companies?
Given today’s crude price and dollar-rupee exchange rates, the cost of petrol supplied by oil companies inclusive of their marketing charges is Rs 29.54 per litre.
Consumers end up paying Rs.77.50 per litre owing to a raft of duties and cess. Consumers here pay Rs 47.96 per litre in taxes and duties over and above the price at which it lands in the market. These levies include central excise duty, state VAT, octroi, cess and commission for petrol pump owners, translating into 153 % in taxes.
According to Times of India, a senior economist working closely with the government, on condition of anonymity, admitted that government was trying to boost its revenues by hiking the cess on petrol. At a time when its debt level has crossed a virtually unsustainable Rs 4.13 lakh crore, it has reached a stage in which it cannot afford to increase borrowings to fund additional expenditure.