Regarding the rising prices of petrol and diesel, there is a concern for the general public, from the government to the opposition. Politics is at its peak. But do you know that coal is not given much importance by the common man. The government also earns a hefty amount from the coal sector in the form of tax. You will be surprised to know that 94 percent on coal is only levied and taxed. Due to which the public has to bear a burden of about 25000 crore rupees every year. After all, what is the factor of earning from this black diamond and in which item do we have to pay so much tax?
In fact, about 53 percent of the total source of electricity produced in the country is still produced from coal, while the remaining 47 percent is used for lignite, gas, diesel and electric. One reason for the higher tax on coal is also to be within the purview of GST.
The levy and tax share is 94 percent
Generally, the share of state and central government taxes on petrol and diesel is about half of its price. But if the levy and all taxes on coal are combined, then it sits at around 94 per cent. This includes 14 percent royalty, 5 percent GST, Rs 400 per tonne GST compensation cess, two percent National Mineral Exploration Tax on total royalty, 30 percent mineral foundation tax.
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Tax has to be paid here too
In addition, Rs 23 per tonne on coal is taken as environment and development levy. At the same time, limit tax of two rupees per ton is also to be paid. On the other hand, if coal is produced from western coalfield, then it includes forest tax of Rs 57 per tonne. The process of tax is not the only end. Once coal is produced, then it also has to pay taxes on crushing, transportation of trucks and evacuation.
This is how the burden of 25000 crores falls
According to the data given on the website of Regulatory Bodies related to the power sector, due to different taxes and levies in the process from coal production to making electricity, customers have to bear a burden of about 25000 crores every year. You will also be surprised to know that GST is levied on coal while GST is levied on electricity. Coal is actually a raw material, so it has been kept under the purview of GST while electricity is the final product, hence GST is charged on it.
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