Hyderabad: The state government's commercial tax earnings have shot up significantly on the back of higher fuel prices and an increase in fuel and liquor sales.
The government had estimated it would earn Rs 57,500 crore through commercial taxes in the Budget for 2021-22. Of this, it has already earned Rs 29,885 crore in the first half (April-September) despite the Covid lockdowns and curbs on business activities, data with the commercial taxes department showed
Petrol cost Rs 107.71 per litre in Hyderabad on Saturday, and diesel Rs 100.51, against Rs 87.06 on January 1 this year, and diesel Rs 80.60, marking a rise of about Rs20 in 10 months.
The state has 1.41 crore vehicles and the average daily petrol sale stands at Rs 55 lakh litres and diesel 1.25 crore litres. The state government imposes 35.2 per cent VAT on petrol and 27 per cent on diesel. These are fetching Rs 1,200 crore per month since April, against Rs 600 crore in May 2019.
The increase in domestic LPG cylinder prices is also contributing to higher GST collections; 5 per cent GST is imposed on the commodity. The per-cylinder price of LPG has risen from Rs 746.50 in January to Rs 952 now. Only a few customers are receiving Rs 40 as subsidy.
