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- Retail prices of petrol and diesel had already gone up in Delhi after a hike in VAT by the Delhi government.
- After the hike in excise duties, the price of diesel jumped by Rs 7.1 a litre and that of petrol rose by Rs 1.7 a litre in Delhi.
- From 27% to 30% for petrol &
- From 16.75% to 30% for diesel.
- The special excise duty on petrol was hiked by Rs 2 a litre to Rs 12 a litre & by Rs 5 a litre to Rs 9 a litre for diesel.
- Road cess on both petrol and diesel has also been increased by Rs 8 a litre to Rs 18 a litre.
REVENUE TO THE GOVERNMENT?
- Roughly, every rupee hike in excise duty is expected to yield Rs 13,000-14,000 crore annually.
- This hike is expected to garner Rs 1.6 lakh crore additional revenue.
SHOULD GOVERNMENT HAVE PASSED THE BENEFITS TO CONSUMER?
Q) Consider the following statements wrt taxes imposed by governments on Petrol & Diesel-
- VAT is imposed by Central Government and Excise duty is imposed by State government.
- Excise duty imposed on Petrol & Diesel is expressed in percentage
Which of the above statements are correct?
- 1 only
- 2 only
- Both 1 & 2
- None of the above