Fuel Tax Facts: State-Wise Tax On Petrol And Diesel In India

fual tax

Understanding fuel taxes in India necessitates a nuanced grasp of intricate state-wise tax structures on petrol and diesel. As citizens contend with escalating fuel prices, it’s crucial to explore how a complex web of taxes shapes these costs. This examination, emphasizing state-wise tax variations, reveals the multifaceted nature of fuel taxation in the country. Amidst these considerations, individuals are also compelled to address ancillary concerns such as buying car insurance online, exploring options like third-party car insurance, zero depreciation in car insurance, and utilizing car insurance premium calculators for informed decisions. Third-party car insurance is mandatory as per the law.

Indirect Effects On The Car Industry

Rising fuel prices lead to a decline in demand for vehicles, adversely affecting the automobile industry. This cascading effect extends to various sectors, inflating logistics and transportation expenses, squeezing business profit margins. Furthermore, the surge in fuel prices contributes to inflation, increasing the cost of essential goods.

State-Wise Tax On Petrol And Diesel

State and Central Government taxes constitute about 55% of the total petrol and diesel retail price. The table below illustrates the state-wise taxes on gasoline and diesel, showcasing the variations in VAT rates and additional charges across different regions. This disparity in state-level taxes contributes significantly to the diverse fuel prices observed nationwide.

State Tax on Petrol Tax on Diesel
Andaman and Nicobar Islands 6% 5%
Andhra Pradesh 31% VAT + ₹4 per litre VAT + Re. 1 per litre Road Development Cess 22.25% VAT + ₹4 per litre VAT + ₹1 per litre Road Development Cess
Arunachal Pradesh 20% 14.5%
Assam 32.66% or ₹22.63 per litre (whichever is higher) 23.66% or ₹17.45 per litre (whichever is higher)
Bihar 26% or ₹16.65 per litre (whichever is higher) 19% or ₹12.33 per litre (whichever is higher)
Chandigarh ₹10 per litre KL Cess + 22.45% VAT 14.02%
Chhattisgarh 25% VAT + ₹2 per litre 25.81% VAT + ₹2 per litre
Dadra and Nagar Haveli 20%
Delhi 30% 16.75% VAT + ₹250 per kiloliter air ambience charges
Goa 27% VAT + 0.5% Green Cess 22% VAT + 0.5% Green Cess
Gujarat 20.1% VAT + 4% Town Rate Cess
Haryana 25% or ₹15.62 per litre + 5% additional VAT
Himachal Pradesh 25% or ₹15.50 per litre (whichever is higher)
Jammu & Kashmir 24% MST + ₹5 per litre Employment Cess
Jharkhand 22% or ₹17 per litre + Re. 1 per litre Cess
Karnataka 35%

In the realm of fuel tax facts, state-wise intricacies are pivotal in influencing the overall cost of petrol and diesel in India. As citizens navigate fluctuating fuel prices, understanding these state-specific tax structures is paramount for budget management. Additionally, the parallel consideration of car insurance options, including the convenience of buying car insurance online, the advantages of third-party car insurance, the protective aspects of zero dep in car insurance, and the informed decision-making facilitated by car insurance premium calculators, signifies a holistic approach toward financial prudence in the face of escalating fuel costs. You can use a car insurance premium calculator to estimate the costs of premiums to be paid. Claims are subject to terms and conditions set forth under the motor insurance policy. *

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