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Gujarat Govt Nets Rs15K Cr VAT Revenue on Fuel Sales

  • The state government earned VAT revenues of more than Rs15,700 crore on sale of natural gas and other fuels in the last two years, the assembly was informed on Wednesday.Energy minister Saurabh Patel said in a written reply that the VAT rates charged on petrol, diesel and natural gas were 23%, 21% and 15% respectively. However, domestic LPG and PDS kerosene are exempted from VAT.

  • “The state government earned Rs15,768 crore as VAT on these fuels in 2010 and 2011,” Patel said. The information was in response to a question by Congress MLA from Talala, Bhagwan Barad.The VAT revenues on sale of fuels was Rs6,660 crore in calendar year 2010. However, on account of the sharp rise in prices of petrol, diesel and natural gas, the VAT revenues on their sales jumped by more than 36% to over Rs9,108 crore in 2011.In spite of extremely robust rise in VAT collections, the state government has rejected demands to reduce the tax rates.In addition to VAT, the state government also charges cess of 2% and 3% on petrol anddiesel respectively. The state government had collected Rs600 crore as cess on the two fuels in 2010 and Rs768 crore in 2011.

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