Fuel tax to swell revenue of states past pre-Covid highs
NEW DELHI: Revenue of India’s top ten states is set to exceed the pre-pandemic levels on account of rise in tax collection on petroleum products, according to a Crisil report. “We expect sales tax revenue for states to increase 30 per cent this fiscal from FY20 levels, even as fuel volume remains 2-3 per cent lower than the pre-pandemic levels.
The price of crude oil is seen hovering at $70 per barrel on average this fiscal,” said Manish Gupta, senior director, Crisil Ratings. These states include Maharashtra, Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Telangana, Rajasthan, West Bengal, Madhya Pradesh, and Kerala.
