Increase in Kalal Tax leads to an increase in petrol / diesel by Rs. 2.50 per litre!
Posted on: 06/Jul/2019 12:29:12 PM
After the recent budget, the central government has increased the Kalal Tax on petrol and diesel. The central finance minister Nirmala Seetharaman spoke in this regard while presenting the budget report:
�The price of petrol/diesel has come down from its maximum. Due to this reason and also in order to increase the central government revenue through tax, the Kalal Tax on petrol/diesel is increased by Rs. 2. Further, the central government has decided to increase the additional Tax (Cess Tax) on petrol/diesel by Rs. 2 in order to access revenue for the highways/roads infrastructure improvement.
Through, the central government will have an additional revenue of Rs. 28000 Crores. Apart from this, the import tax for crude oil is increased by Re. 1 per ton. With this increase in import duty, there will be an additional revenue of Rs. 22 Crores earned.�
Presently, a total Kalal Tax of Rs. 17.98 (Basic Kalal Tax Rs. 2.98, Additional Kalal Tax Rs. 7, Cess Tax Rs. 8)is imposed. The total Kalal Tax on diesel is Rs. 13.83 (Basic Kalal Tax � Rs. 4.88, Additional Kalal Tax � Re. 1, Cess Tax � Rs. 8).
Apart from this, the individual states also charge different VATs (Value Added Taxes) in different percentages (%).
As Kalal tax has been increased, the petrol price has shot up by Rs. 2.57 per litre and diesel by Rs. 2.52 per litre.
As on Saturday (today, 7th July) in Chennai Metro City, following the increase in Kalal Tax as per the recent budget, petrol is sold at Rs. 75.76 per litre and diesel at Rs. 70.48 per litre.
