Most of the states in the country still have an opportunity to reduce the value-added tax (VAT). If these states do this, then they can reduce the price of diesel by Rs 2 and petrol by Rs 3. However, Maharashtra has a chance to reduce both by Rs 5 per liter.
Sometime back when the excise duty was increased, the states used to earn Rs 49,229 crore as VAT on the sale of oil. When it was reduced in the same month, it affected their earnings by Rs 15,021 crore. Even after this, these states are earning Rs 34,208 crore.
Claim in SBI report
The country's largest bank SBI Chief Economist Soumya Kanti Ghosh released a report on Monday. It said that when the central government increases the excise duty, the revenue of the states increases, and when it decreases it decreases. According to the report, Maharashtra is earning the highest VAT. After that, there are Gujarat and Telangana. The average VAT on petrol in Maharashtra, Telangana, and Andhra Pradesh is 29.6 percent.
Excise duty reduced to reduce inflation
The central government had reduced the excise duty by Rs 8 on petrol and Rs 6 on diesel to check high inflation. Thereafter, some states reduced VAT marginally. It has been said in the report that if these states reduce the prices, then it will not cause any loss to them.
Also, when the central government reduces the duty, the revenue of the states automatically decreases. According to the report, the financial condition of the states has improved after the Corona epidemic, as their borrowings have been very low for the rest of the years except FY 2020. This allows them to absorb the tax.
Problems will be overcome by bringing them under the ambit of GST
According to the report, it should be brought under GST to reduce the complexity of the tax structure of oil and stabilize the revenue from the volatility of its prices. If petrol and diesel are brought under the purview of GST, then the central government will have to give up an input tax credit of Rs 20 thousand crores.
Only Assam is suffering
According to the report, only Assam is facing losses at this time. Earlier this state used to earn 188 crore profit. After the reduction of duty, it has an effect of Rs 311 crore, that is, it is incurring a loss of Rs 125 crore. Maharashtra is earning a maximum of Rs 5,510 crore from VAT while Gujarat is earning Rs 4,808 crore. Telangana is making a profit of Rs 3,212 crore, Tamil Nadu 2,554 crore, Andhra Pradesh 2,546 crore, and Karnataka Rs 2,238 crore.
The situation may worsen in the sea of Antarctica, Russia and China again obstructed the maritime security plan
Russia and China have again halted plans backed by the European Union, the US, and 23 other countries to protect three vast stretches of the sea around Antarctica from fishing. Let us inform you that
IND vs AUS: Australian team announced for the last two Tests against India, McSweeney out, these 4 players replaced
The Australian cricket team has made several changes to its team for the fourth and fifth Tests against India to be held in Melbourne and Sydney. These include the name of opener Nathan McSweeney, who
The water crisis in Delhi: 'Two tankers are needed, only one is being sent and that too half', Delhi government's meeting on water shortage
These days, North India is facing the brunt of intense heat. In many areas, the mercury has reached close to 50. The heat is also being seen in the capital Delhi. Meanwhile, Delhiites are also facing
Kollam Sudhi : South actor Kollam Sudhi died in a car accident, and breathed his last at the age of 39
Due to the departure of stars one after the other in the film world, there is an atmosphere of mourning in the entire cinema world, it seems that the film and TV industry has got someone's evil eye.
ICC Test Rankings: Babar Azam at career-best ranking, Shaheen Afridi surpasses Jasprit Bumrah
Pakistan captain Babar Azam is just a few steps away from becoming the number one batsman in all three formats. Babar, who is setting a new record every day on the cricket field, has now secured the
T20 World Cup: 'He has seen difficult times, I want him in the World Cup...' Harbhajan supports Hardik
Former Indian veteran spinner Harbhajan Singh has supported Hardik Pandya. He has said that the last two months have been very difficult for Hardik. Now he should leave this bad time behind with his
Mayank Agarwal caught England flight, can open in Birmingham Test of ENG vs IND series
Opener Mayank Agarwal has caught a flight to England. Mayank shared a photo of himself after boarding the flight on his Instagram story and wrote, 'Birmingham', this player has been included in the
World Cup: Seven out of 10 teams announced; There is a fight in Pakistan regarding selection, these two countries have not announced yet
The ODI World Cup will start in India after 15 days. The 13th edition of the tournament will start on October 5. The final match will be played on 19 November. This time 10 teams will participate in
Parliament: Nine Kashmiri Pandits were killed in three years, Minister of State for Home Nityanand Rai said in Rajya Sabha
Union Minister of State for Home Nityanand Rai has given an important information in the Rajya Sabha. He said that the total number of Kashmiri Pandits killed in the Valley during the last three years
Heroin weapons came again from across the border in Punjab: BSF chased the drone at midnight; 7.5 kg heroin, pistol-cartridge recovered
7.5 kg heroin, pistol, and cartridges have been recovered from India-Pakistan International Border in Firozpur, Punjab. These drugs and weapons were dropped through drones. Which was taken over by
