BJP led government in Centre late on Tuesday increased its taxes and duties on petrol and diesel . Indian Taxes now comprise over 69 percent of the pump price of the two fuels, which is the highest in any part of the world.
Taxes and duties on petrol and diesel were increased by 10 rupees/litre and 13 rupees/litre, respectively, but the Modi government said in a statement that local pump prices would not be affected.
The steepest ever hike in excise duty by Rs 13 per litre on diesel and Rs 10 per litre on petrol last night has catapulted India as the country with the highest taxes on fuel.
Further, additional excise duty was also hiked by Rs 2 per litre on petrol and Rs 5 per litre in diesel. This was the steepest ever hike in duties on fuel in India and came on the same day
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Instead of passing on the benefit of lower crude oil prices to consumers, this move to raise treasury revenues shocked economic experts for the reason in an economy that ground to a halt due to coronavirus crisis this hike will further increase the essential commodities prices.
India pegs retail prices of petrol and diesel to moves in the international markets, where prices of fuel have declined substantially amid the slump in global crude oil demand.
Some state governments earlier on Tuesday sharply raised taxes on alcohol in a bid to bolster their own coffers that have also taken a hit amid the nationwide lockdown that began on March 25.
In Global scenarios other highly tax paid countries are :
Taxes account for 63 percent of the retail price of fuel in France and Germany, 64 percent in Italy, 62 percent in Britain, 53 percent in Spain, 47 percent in Japan, 33 percent in Canada and just 19 percent in the US
