All About Petrol Tax in Arunachal Pradesh
The State Government of Arunachal Pradesh lowered VAT on petrol by 5.5% per litre following the Central Government’s decision to reduce excise duty on petrol. This article highlights the essential aspects of petrol tax in Arunachal Pradesh, so keep reading!
What Is the Petrol Tax Levied in Arunachal Pradesh?
The Government of Arunachal Pradesh reduced VAT on petrol from 20% to 14.5% per litre. Thus, tax relief on petrol by both the Union and State Governments will reduce petrol price by ₹ 10.20 per litre.
Here is this table mentioned below that illustrates vital components that sum up the petrol price in Arunachal Pradesh:
| Elements | Effective as of 21st October 2022 (in ₹ per litre) |
|---|---|
| Price charged to dealers | ₹ 57.35 per litre |
| Excise duty (levied by the Central Government) | ₹ 19.90 per litre |
| Average dealer commission | ₹ 6.50 per litre |
| VAT (levied by the State Government) | ₹ 12.14 per litre {14.5% of (fuel price charged to dealers + excise duty + avg. dealer commission)} |
| Retail Selling price of petrol at Arunachal Pradesh | ₹ 95.89 per litre |
(Note: The above table serves only as an example to explain the petrol tax breakup, with data taken from reliable and authorised sources as of 21st October 2022 . The actual prices, however, may vary as fuel price, dealer’s commission, cess and other such aspects change periodically.)
Who Levies VAT on Petrol in Arunachal Pradesh?
The State Government imposes VAT(14.5% per litre) on petrol. The Central Government also levies excise duty (₹ 19.90 per litre) on petrol.
What Are the Factors Affecting Petrol Tax in Arunachal Pradesh?
Take a look at the factors mentioned below that determines petrol tax in Arunachal Pradesh:
1. Price of Crude Oil
Demand and supply, oil reserves and their supply and international political relations affect the price of crude oil. Changes in crude oil’s price directly influence the petrol price.
2. Dealer’s Commission
Oil Marketing Companies provide a commission to petrol pump owners, significantly affecting petrol prices in Arunachal Pradesh and across the country.
3. Sales Tax and Excise Duty
Each State Government levies VAT or sales tax on petrol after considering dealer’s commission, excise duty, etc. Besides, the Central Government imposes excise duty that does not vary irrespective of fluctuating fuel prices, unlike VAT. These taxes influence petrol prices.
4. Cost for Dealers
Oil Marketing Companies charge a price to dealers to distribute crude oil after factoring in refining cost, freight charges etc. This price affects petrol prices in Arunachal Pradesh and the entire country.
5. Valuation of Indian Rupee Against American Dollars
Transaction for purchasing crude oil from the international market is completed in dollars. Hence, any changes in the valuation of US dollars against Indian currency affect the purchasing price of crude oil and petrol.
Is Petrol Tax Same in All Places of Arunachal Pradesh?
Yes, the VAT rate on petrol is uniform across the state. However, petrol prices may differ across cities given varied dealers’ commissions in each city.
Keep the information mentioned above in mind about petrol tax in Arunachal Pradesh. In addition to this, keep an eye on the latest updates periodically as petrol tax and price keep fluctuating.
Frequently Asked Questions
How much did the Central Government reduce the tax on petrol in November 2021?
The Central Government reduced excise duty by ₹ 5 per litre on petrol in November 2021.
What are the additional factors that affect petrol tax in Arunachal Pradesh?
Demand and supply of petrol and the number of refineries available in the country affect petrol tax in Arunachal Pradesh and across the country.