NEW DELHI: The rising price of fuel has undoubtedly affected the life of the common people. With India having one of the highest tax rates for fuel, there has been a constant call for the reduction of taxes.
Prominent states like Karnataka and Gujarat were among the first to reduce the rates in November last year. But the decision had led them to suffer a huge loss in terms of revenue. The cumulative losses that both the states had suffered stood at Rs 5314 crore and Rs 3555 crore.
Economically weaker states like Assam and the administration of Jammu and Kashmir also suffered a revenue loss of Rs 789 crores and Rs 506 crores.
States like Rajasthan (Rs 2415 cr), Uttar Pradesh (Rs 2806 cr), Madhya Pradesh (Rs 2114 cr), Punjab (Rs 1949 cr), Odisha (Rs 1154 cr), Haryana (Rs 973 cr) and Bihar (Rs 700 cr), who had reduced VAT on fuel, also suffered considerable loss of revenue.
On the contrary, the prominent opposition ruled states like Maharashtra (Rs 3412 cr), Tamil Nadu (Rs 2924 cr), Andhra Pradesh (Rs 1371 cr), West Bengal (Rs 1343 cr), Kerala (Rs 1187 cr) and Jharkhand (Rs 664 cr), that did not cut down on VAT, saw their kitty swelled by a considerable margin – event at the cost of the general public.
Delhi, which earned Rs 173 cr from VAT on fuel, also stayed in the green zone in terms of revenue.