Rochak Chauhan::Unpredictably Exciting

Petrol Price per liter in our neighbors and other countries

Pakistan = 26Rs

Bangladesh = 22Rs

Cuba = 19Rs

Nepal = 34Rs

Burma = 30Rs

Afghanistan = 36Rs

Qatar = 30Rs

Chine =23 Rs

USA=2$ a gallon =30Rs/liter approx

In all these countries, basic cost of petrol is 15-17 Rs and taxation comes to another 15 Rs or so i.e. price doubles because of tax.

India=53Rs

Basic cost of petrol =16.50 Rs

Central tax = 11.80

Central Excise duty 9.75

State tax=8

Vat 4

Total 50.50, now made 53

India is the only country which tripples the cost of petrol because of tax

India collects the majority of central tax and Central excise from oil only

(Actually our cost of oil is even less because ONGC produces 1/3rd of our oil for 20Rs per barrel but sells at 70Rs a barrel to govt, which pockets the royalties.)

HPCL profit 574 Cr

IOC 5556 Cr

BPCL 5015 Cr

Centre collects corporate tax also from these companies.

Why does our Indian govt collect so much tax from a raw material?

Because the finance ministry is lazy and corrupt and finds it difficult to collect from end products – because then those babus will have to actually work.

So much easier to apply a strangle hold on oil companies and extract the money (like a ransom) even before it has been put to productive use in the economy.

Cost to economy because of excessive taxation of oil sector is estimated at 3% of GDP.

The tax collected is anyway wasted in corruption and nepotism

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