As the petrol prices touching the sky, let us revisit to understand the great rope tricks played by our Union Finance Minister
As now the divisible pool share is a big discussion, we should understand how Union is playing tricks to deny the share from divisible pool
jamewils.com/2017/09/decodi…
(i) Basic Cenvat Duty
(ii) Additional Excise Duty
(iii) Special Additional Excise Duty
Out of the above three components, only Basic Cenvat Duty is shared with the States!
So rest of the share of basic plus (ii) & (iii) goes to Union
Excise Duty on Petrol:
19/09/2017 - ₹21.48/ltr
02/04/2018 - ₹19.48/ltr
So this gives an impression that Central Government done a huge tax cut of ₹2/ltr
But what is the reality?
Let's see
Firstly, acut of ₹4/ltr was done on basic excise duty
Secondly, added ₹2/ltr to the Additional Excise Duty Component
So how this formula works out between the shares of Union and States?
Let's see!
While what all States together got is reduced from ₹3.56 to ₹1.88, ie, ₹1.68/ltr
See the table below
But check, how much is our consumption too
End.