The Maharashtra government collected 33 per cent more taxes from petrol consumers in the first five months of this year compared to last year. From diesel consumers, the increase in income from taxes in the same period grew by 15 per cent compared to last year.
As retail prices for petrol and diesel rose last week, the Maharashtra government offered an additional cut of Rs 2.5 per litre on fuel prices over and above Rs 2.5 per litre cut the central government announced — bringing the effective cut for consumers to Rs 5 per litre. The move by the state government is expected to lead to a loss of Rs 1,800 crore in income from taxes levied on fuel consumers.
Tax collection on these petroleum products contributes Rs 24,000 crore to the state’s revenue. Last year, the state government collected Rs 12,162 crore through taxes levied on diesel consumers and Rs 9,775 crore from petrol consumers.