Gujarat's Fuel Tax: A Billion-Dollar Revenue Source

The Gujarat government generated Rs 40,569 crore from VAT and cess on fuel, CNG, and PNG over two years, as revealed in the legislative assembly. Finance Minister Kanubhai Desai detailed the earnings, highlighting significant revenue from petrol and diesel taxes between February 2023 and January 2025.

The Gujarat government has reported a substantial revenue generation of Rs 40,569 crore from value-added tax (VAT) and cess on fuel, CNG, and PNG in the past two years. This was revealed during a legislative assembly session on Tuesday.

The state Finance Minister, Kanubhai Desai, provided a detailed breakdown in a written reply, noting that Rs 19,928 crore was collected between February 2023 and January 2024, and Rs 20,641 crore between February 2024 and January 2025.

The earnings were questioned by Congress MLA Kanti Kharadi during the Budget session's Question Hour. Desai disclosed that the government accrued Rs 12,505 crore from VAT and cess on petrol, Rs 27,788 crore on diesel, Rs 59 crore on PNG, and Rs 217 crore on CNG in two years up to January 31, 2025.

(With inputs from agencies.)