All About Petrol Tax in Manipur
The Manipur Government lowered VAT on petrol, following the decision of the Central Government to reduce excise duty on petrol, thereby lowering the petrol price. This article highlights vital aspects of petrol tax in Manipur, and willing readers must keep scrolling to know more about it.
What Is the Petrol Tax Levied in Manipur?
The State Government of Manipur lowered VAT on petrol by ₹7 per litre. The finance department of Manipur stated that this reduction aims to prevent inflationary pressure on petrol prices and sustain the country's growth.
Here is this table illustrated below that summarises components that make up the petrol price in Manipur:
| 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 | ₹4.93 per litre |
| VAT (levied by the State Government) | ₹19.10 per litre {23.24% of (fuel price charged to dealers + excise duty + avg. dealer commission)} |
| Retail selling price of petrol at Manipur | ₹101.28 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 Petrol Tax in Manipur?
The Central Government levies excise duty (₹19.90 per litre), while the Manipur Government charges VAT (₹19.10 per litre) on petrol. Thus, governments at both levels control the tax on petrol, which determines petrol price in Manipur, along with additional factors like dealers' commission etc.
What Are the Factors Affecting Petrol Tax in Manipur?
Factors that affect the petrol tax in Manipur are as follows:
1. Dealer's Commission
The commission paid to petrol pump owners by OMCs influences the petrol price in Manipur.
2. Price of Crude Oil
Alteration in crude oil's price in the international market directly affects petrol's purchasing price in the domestic market. The price of crude oil is subject to change due to the following factors:
- International political relation
- Supply and demand of crude oil
- Oil reserve in future and its supply
3. Excise Duty and Sales Tax
Each state government and the Central Government charge sales tax and excise duty respectively, on petrol. These tax rates are ultimately borne by consumers as this also adds up to the petrol price.
4. Cost for Dealers
Oil Marketing Companies distribute crude oil and levies a price to dealers accordingly. This price affects the petrol price in Manipur.
5. Valuation of Indian Rupees Against US Dollars
The exchange rate between Indian rupees against American dollars influences the price of petrol as the price paid for purchasing crude oil from the international market is done in dollars.
6. Demand and supply for petrol
Higher demand and lower supply for petrol hamper the demand and supply equilibrium, which results in petrol prices. Availability of refineries also affects this supply.
Is Petrol Tax Same in All Places of Manipur?
The State Government levies an equal rate of VAT on petrol in Manipur. However, petrol prices may change with each city, given the variation in dealers' commission charged in each city.
Thus, this is all about crucial aspects of petrol tax in Manipur. Remember, petrol prices are subject to change, hence remaining mindful of the same is essential.
Frequently Asked Questions
How much VAT did the Manipur Government impose on petrol before reducing it in November 2021?
The State Government levied a 32% VAT on petrol in Manipur before reducing it in November 2021.
Is there any additional cess on petrol tax in Manipur?
No, there is no additional cess on petrol tax in Manipur.