Gujarat govt makes ₹40,000 cr from VAT-cess levied on fuels

In response to a query raised regarding the tax collected on fuel in the state assembly, state finance minister Kanu Desai noted that in the last two years, the Gujarat government collected a value-added tax (VAT) of ₹40,000 cr from petrol, diesel, CNG, and PNG sales.

On the VAT levied on petrol sales, the government earned ₹12,050.33 cr in two years, while it made ₹27,559.46 cr on diesel sales in the same tenure.

Similarly, in two years, the government’s earnings through VAT fetched ₹324.76 cr from CNG sales and ₹89 cr from PNG sales.

13.7% VAT and 4% cess are levied on petrol while 14.9% VAT and 4% Cess are levied on diesel in the state.

CNG wholesalers are charged the highest, at 15% VAT, while CNG retailers are charged 5% VAT. A 15% VAT applies to PNG commercial, while a 5% VAT applies to PNG household.

An exemption is provided in the tax rates for PNG and CNG sales.

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