Thread by @rishibagree

Fuel Tax which Centre Collects :

1⃣Road Cess - ₹ 18/litre
₹ 50000 cr - Jal Jeevan Mission
₹ 79000 cr - Road Construction
Rest - Infra sector

2⃣Agri Infra tax - ₹ 4/litre
₹ 30000 cr - APMC, Storage infra & Food Processing park

3⃣Excise - ₹ 12.40/ litre
41% goes to States

Central Taxes on Petrol-Diesel is fixed at Rs 32-34/ litre.
Out of which a portion is given to the state directly & rest is spent on the road construction in the States.

State Taxes like VAT on Petrol is on percentage.
Higher Crude rates translates into higher taxes for State.

The Fuel revenue usually forms 20% of the State revenue. This is the reason every state irrespective of party line opposes fuel inclusion in GST.

Even if Fuel is included in 28% GST bracket it means a Annual revenue loss of ₹ 4.27 lakh crore to States.

India consumes 2,639 cr litres of Petrol & 9,306 cr litres of diesel annually.

Any Reduction in taxation shall significantly dent total revenues and considering the lack of alternative tax revenue and a constraint fiscal space.

No wonder, Every State opposed this in GST council

Between 2005-14, UPA Govt spent 900,000 crore under fuel subsidy. To pay this bill, they borrowed at 9 % interest when Global rates were down to 1% during this period

Such high interest rates prevented India from spending on infrastructure as viability of projects came down.

Modi Govt had to do the repairing job to overcome the damage caused in UPA time.
Not only they repaid the bonds but also collected taxes for capex.
Less borrowings also results in lower interest rates now which is reflected in sub 7% interest rates as against 12% rates 6 yrs ago

Citizens of India definitely have a right to ask & chose between lower taxes on fuel Vs higher spending on infrastructure for building roads, ports, airports, water & power needed for tomorrow !

Choice has to be clear, do we want to prosper now or want to stay poor!