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NEW DELHI: The federal government’s assortment from levy of excise obligation on petroleum merchandise has risen 33 per cent within the first six months of the present fiscal in comparison with final yr and is 79 per cent greater than pre-Covid ranges, official knowledge confirmed.
Knowledge out there from the Controller Normal of Accounts (CGA) within the Union Ministry of Finance confirmed excise obligation collections throughout April-September 2021 surging to over Rs 1.71 lakh crore, from Rs 1.28 lakh crore mop-up in the identical interval of the earlier fiscal.
Because of a steep hike in excise obligation charges, the gathering is 79 per cent greater than Rs 95,930 crore mop-up in April-September 2019.
Within the full 2020-21 fiscal, excise collections had been Rs 3.89 lakh crore and in 2019-20, it was Rs 2.39 lakh crore, CGA knowledge confirmed.
After the introduction of the Items and Providers Tax (GST) regime, excise obligation is levied solely on petrol, diesel, ATF and pure fuel. Barring these merchandise, all different items and providers are underneath the GST regime.
Out of the Rs 2.3 lakh crore excise assortment in 2018-19, Rs 35,874 crore was devolved to states, in accordance with the CGA. Within the earlier 2017-18 fiscal, Rs 71,759 crore was devolution to the states out of a group of Rs 2.58 lakh crore.
The incremental assortment of Rs 42,931 crore within the first six months of the fiscal yr 2021-22 (April 2021 to March 2022) is 4 instances the Rs 10,000 crore legal responsibility that the federal government has within the full yr in direction of compensation of oil bonds that had been issued by the earlier Congress-led UPA authorities to subsidise gasoline.
The majority of excise obligation assortment is from the levy on petrol and diesel and with gross sales selecting up with a rebounding financial system, the incremental collections within the present yr could also be over Rs 1 lakh crore in comparison with the earlier yr, business sources stated.
In all, the UPA authorities had issued Rs 1.34 lakh crore value of bonds (equal to a sovereign dedication to pay in future) to state-owned oil corporations to compensate them for promoting gasoline equivalent to cooking fuel LPG, kerosene and diesel at charges under price.
Of this, Rs 10,000 crore is because of be repaid within the present fiscal, in accordance with the finance ministry.
First, Finance Minister Nirmala Sitharaman after which Oil Minister Hardeep Singh Puri had blamed the oil bonds for limiting fiscal area to offer aid to individuals from gasoline costs buying and selling at all-time excessive ranges. The majority of the excise collections come from petrol and diesel on which the Modi authorities had levied report taxes final yr.
Excise obligation on petrol was hiked from Rs 19.98 per litre to Rs 32.9 final yr to recoup achieve arising from worldwide oil costs plunging to multi-year low as pandemic gulped demand. On diesel, the obligation is hiked to Rs 31.80.
Whereas worldwide costs have since recovered to $85 and demand returned, excise obligation has remained on the similar degree. This has resulted in petrol worth hovering above Rs 100-a-litre-mark in all main cities and diesel crossing that degree in additional than one-and-a-half dozen states.
The entire enhance in petrol worth because the Might 5, 2020 resolution of the federal government to boost excise obligation to report ranges now totals Rs 37.38 per litre. Diesel charges have throughout this era gone up by Rs 27.98 per litre.
The federal government had raised excise obligation on petrol and diesel to mop up positive factors that will have in any other case accrued to customers from worldwide oil costs crashing to as little as $19 per barrel.
Petrol and diesel in addition to cooking fuel and kerosene had been offered at subsidised charges throughout the earlier Congress-led UPA authorities. As an alternative of paying for the subsidy to convey parity between the artificially suppressed retail promoting worth and the associated fee that had soared due to worldwide charges crossing $100 per barrel, the then authorities issued oil bonds totalling Rs 1.34 lakh crore to the state-fuel retailers.
These oil bonds and the curiosity thereon are being paid now.
Of the Rs 1.34 lakh crore of oil bonds, solely Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is due for compensation between this fiscal and 2025-26, in accordance with data made out there by the finance ministry.
The federal government has to repay Rs 10,000 crore this fiscal yr (2021-22). One other Rs 31,150 crore is because of be repaid in 2023-24, Rs 52,860.17 crore within the following yr and Rs 36,913 crore in 2025-26.
Minister of State for Petroleum and Pure Fuel Rameswar Teli had in July instructed Parliament that the Union authorities’s tax collections on petrol and diesel jumped by 88 per cent to Rs 3.35 lakh crore within the yr to March 31, 2021 (2020-21 fiscal) from Rs 1.78 lakh crore a yr again.
Excise assortment in pre-pandemic 2018-19 was Rs 2.13 lakh crore.
Knowledge out there from the Controller Normal of Accounts (CGA) within the Union Ministry of Finance confirmed excise obligation collections throughout April-September 2021 surging to over Rs 1.71 lakh crore, from Rs 1.28 lakh crore mop-up in the identical interval of the earlier fiscal.
Because of a steep hike in excise obligation charges, the gathering is 79 per cent greater than Rs 95,930 crore mop-up in April-September 2019.
Within the full 2020-21 fiscal, excise collections had been Rs 3.89 lakh crore and in 2019-20, it was Rs 2.39 lakh crore, CGA knowledge confirmed.
After the introduction of the Items and Providers Tax (GST) regime, excise obligation is levied solely on petrol, diesel, ATF and pure fuel. Barring these merchandise, all different items and providers are underneath the GST regime.
Out of the Rs 2.3 lakh crore excise assortment in 2018-19, Rs 35,874 crore was devolved to states, in accordance with the CGA. Within the earlier 2017-18 fiscal, Rs 71,759 crore was devolution to the states out of a group of Rs 2.58 lakh crore.
The incremental assortment of Rs 42,931 crore within the first six months of the fiscal yr 2021-22 (April 2021 to March 2022) is 4 instances the Rs 10,000 crore legal responsibility that the federal government has within the full yr in direction of compensation of oil bonds that had been issued by the earlier Congress-led UPA authorities to subsidise gasoline.
The majority of excise obligation assortment is from the levy on petrol and diesel and with gross sales selecting up with a rebounding financial system, the incremental collections within the present yr could also be over Rs 1 lakh crore in comparison with the earlier yr, business sources stated.
In all, the UPA authorities had issued Rs 1.34 lakh crore value of bonds (equal to a sovereign dedication to pay in future) to state-owned oil corporations to compensate them for promoting gasoline equivalent to cooking fuel LPG, kerosene and diesel at charges under price.
Of this, Rs 10,000 crore is because of be repaid within the present fiscal, in accordance with the finance ministry.
First, Finance Minister Nirmala Sitharaman after which Oil Minister Hardeep Singh Puri had blamed the oil bonds for limiting fiscal area to offer aid to individuals from gasoline costs buying and selling at all-time excessive ranges. The majority of the excise collections come from petrol and diesel on which the Modi authorities had levied report taxes final yr.
Excise obligation on petrol was hiked from Rs 19.98 per litre to Rs 32.9 final yr to recoup achieve arising from worldwide oil costs plunging to multi-year low as pandemic gulped demand. On diesel, the obligation is hiked to Rs 31.80.
Whereas worldwide costs have since recovered to $85 and demand returned, excise obligation has remained on the similar degree. This has resulted in petrol worth hovering above Rs 100-a-litre-mark in all main cities and diesel crossing that degree in additional than one-and-a-half dozen states.
The entire enhance in petrol worth because the Might 5, 2020 resolution of the federal government to boost excise obligation to report ranges now totals Rs 37.38 per litre. Diesel charges have throughout this era gone up by Rs 27.98 per litre.
The federal government had raised excise obligation on petrol and diesel to mop up positive factors that will have in any other case accrued to customers from worldwide oil costs crashing to as little as $19 per barrel.
Petrol and diesel in addition to cooking fuel and kerosene had been offered at subsidised charges throughout the earlier Congress-led UPA authorities. As an alternative of paying for the subsidy to convey parity between the artificially suppressed retail promoting worth and the associated fee that had soared due to worldwide charges crossing $100 per barrel, the then authorities issued oil bonds totalling Rs 1.34 lakh crore to the state-fuel retailers.
These oil bonds and the curiosity thereon are being paid now.
Of the Rs 1.34 lakh crore of oil bonds, solely Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is due for compensation between this fiscal and 2025-26, in accordance with data made out there by the finance ministry.
The federal government has to repay Rs 10,000 crore this fiscal yr (2021-22). One other Rs 31,150 crore is because of be repaid in 2023-24, Rs 52,860.17 crore within the following yr and Rs 36,913 crore in 2025-26.
Minister of State for Petroleum and Pure Fuel Rameswar Teli had in July instructed Parliament that the Union authorities’s tax collections on petrol and diesel jumped by 88 per cent to Rs 3.35 lakh crore within the yr to March 31, 2021 (2020-21 fiscal) from Rs 1.78 lakh crore a yr again.
Excise assortment in pre-pandemic 2018-19 was Rs 2.13 lakh crore.
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