Across the globe, there is a perceptible shift from petrol/diesel-powered vehicles towards those which run on electricity. While EVs may be in a minority right now, all indications are that they will soon be competing with their internal combustion engines counterparts.
This is great news from the perspective to meet lower carbon emission targets. But, in the short term, it spells disaster for the governments tax revenues if the demand for petroleum products falls.
FAME II Subvention
2. How much do petroleum products cost to the State and Centre Taxes
a.The centre taxes on petroleum products accounted for between 14 and 20 percent of the total gross tax revenue.
It was Rs 2,87 500 crore in FY20, which was 14.3 per cent of the Centre’s total gross tax revenue
It was Rs 4,19.800 crore in FY21 which was 20.7 per cent of the total Centre’s gross tax revenue
b.The state taxes on petroleum products accounted for about 11 percent of the total gross tax revenue
It was Rs.2,07 800 crore in FY20, which was 11.1 per cent of the total state tax revenue
It was Rs 2,09 100 crore in FY21, which represented 11.4 percent of total state tax revenue
3.The government holds a majority of BPCL HPCL, ONGC, OIL, OIL, and ONGC. The shift from EVs will have an impact on volume sales and thereby affect some of the planned divestments.
Company GOI stake
OIL India 56.66
(Edited By : Priyanka Deshpande)