Excise duty on petrol and diesel increased as oil prices decline
The Government of India on Saturday hiked excise duty on petrol and diesel by Rs 3 per litre each to collect about Rs 39,000 crore additional revenue. The decision was taken as it repeated its 2014-15 act of not passing on gains appearing from fall in international prices of oil.
An official stated that the retail prices of petrol and diesel will not be affected by the tax changes as the state-owned oil firms have adjusted them against the fall in oil prices.
As per the report, the Central Board of Indirect Taxes and Customs issued a notification that the special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre in case of petrol and to Rs 4 per litre from Rs 2 in case of diesel. Likewise, the road cess was raised by Rs 1 per litre each on petrol and diesel to Rs 10.
Meanwhile, the total incidence of excise duty on petrol and diesel has risen to Rs 22.98 per litre and Rs 18.83 per litre, respectively. Earlier, the tax on petrol and diesel was Rs 9.48 and Rs Rs 3.56 per litre, respectively, when Prime Minister Narendra Modi came to power in 2014.
Furthermore, the official said that the hike in excise duty will increase the annual government revenues by about Rs 39,000 crore. The benefits during the remaining 3 weeks of current fiscal would be less than Rs 2,000 crore, the official said.
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Meanwhile, petrol and diesel now cost Rs 69.87 and Rs 62.58 per litre in Delhi, respectively. Therefore, the hike in excise duty will be implemented in Chandigarh, Punjab, Haryana, and other states as well.
-PTC News
