VAT cut reduced revenue from fuels by Rs 10,500 crore
The reduction in VAT also led to Rs 1,000 crore less revenue from compressed natural gas (CNG) and piped natural gas (PNG)
The state government told the Gujarat assembly that its reduction of value added tax (VAT) on petrol and diesel in October 2021 has resulted in Rs 9,500 crore less revenue in the last two years.
The reduction in VAT also led to Rs 1,000 crore less revenue from compressed natural gas (CNG) and piped natural gas (PNG).
Finance minister Kanu Desai told the assembly that the government had collected Rs 38,730 crore from VAT and cess on petrol, diesel, CNG and PNG in the last two years, in reply to a question by Maninagar MLA Amul Bhatt.
Desai said the state garnered Rs 11,870 crore from VAT and cess on petrol, Rs 26,383 crore from diesel, Rs 128 crore from PNG and Rs 376 crore on CNG in these two years.
The state government imposes 13.7% VAT and 4% cess on petrol, 14.9% VAT and 4% cess on diesel, 15% VAT on PNG (commercial), 5% VAT on PNG (household), 15% VAT on CNG (wholesaler), and 5% VAT on CNG (retailer), he said.
The state government has received Rs 4,219 crore in GST compensation, and for the remainder it has received a loan of Rs 15,036.85 crore, which will be repaid by the Centre, he said.