Maharashtra petrol tax up to 1.5 times central duty at Rs 30.26 per litre

MUMBAI: An analysis of taxes on petrol and diesel shows that the state taxes (VAT and surcharge/cess) are higher than the central tax (excise duty) by up to 1.5 times. The Centre has reduced the excise duty substantially on two occasions (November 4 and May 22). Now the onus is on the state to reduce the surcharge/cess on both petroleum products, say pricing experts and consumers.
Besides, the state should consider moving to the 40% GST regime on both petrol and diesel instead of double taxation, said experts.
"Data shows that on May 6, 2020, the Centre's taxes on petrol were Rs 32.98 in per litre price while that of state were Rs 21.50. Now, as of Monday, while central taxes amounted to Rs 19.90, state taxes amount to Rs 30.26. Similarly, diesel taxes by Centre were Rs 31.83 in per litre price on May 6, 2020, while that of state were Rs 13.19. As per Monday pricing, state showed taxes at Rs 20.80 and the Centre at Rs 15.80," said petrol dealer Kedar Chandak.
After the Centre cut excise duty on per litre of petrol and diesel by Rs 8 and Rs 6, respectively, the state's VAT, which is levied on an ad valorem (according to value) basis, automatically reduced by Rs 2.08 and Rs 1.44 a litre on petrol and diesel, respectively, from Sunday. Experts said it was now time for the state to reduce its cess.
The petrol rate in Mumbai on Sunday morning was Rs 110.43 per litre and the diesel rate, Rs 97.31per litre.