Govt’s excise mop-up from petrol, diesel doubles to Rs 3.7 lakh cr in FY21; states get Rs 20,000 cr

Nov 30, 2021

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NEW DELHI: The central authorities’s mop-up from excise obligation levied on petrol and diesel greater than doubled to Rs 3.72 lakh crore within the pandemic 12 months 2020-21, out of which states got lower than Rs 20,000 crore, in response to a reply by the federal government within the Rajya Sabha on Tuesday.
Minister of State for Finance Pankaj Chaudhary in a written reply to a query acknowledged that assortment from levy of central excise obligation on petrol and diesel elevated from Rs 1.78 lakh crore in 2019-20 to Rs 3.72 lakh crore in 2020-21 (April 2020 to March 2021).
The rise within the assortment was primarily on account of rise within the incidence of taxation on fuels.
Complete excise obligation on petrol was Rs 19.98 per litre in 2019 and Rs 15.83 a litre on diesel. The federal government raised excise obligation twice final 12 months to Rs 32.98 per litre on petrol and to Rs 31.83 on diesel.
The obligation was moderated to Rs 32.90 a litre on petrol and Rs 31.80 on diesel within the price range this 12 months. And it was reduce by Rs 5 a litre on petrol and Rs 10 per litre on diesel this month after retail costs jumped to file excessive throughout the nation.
“The entire quantity of tax devolved to state governments from the corpus collected below the central excise obligation in FY 2020-21 was Rs 19,972 crore,” Chaudhary mentioned.
Whereas the whole incidence of excise on petrol at present is Rs 27.90 a litre and that on diesel is Rs 21.80, states are entitled to get a share solely from the essential excise obligation.
Out of the whole incidence of taxation, the essential excise obligation on petrol is Rs 1.40 a litre. On high of this, particular extra excise obligation is levied of Rs 11 and a highway and infrastructure cess of Rs 13 a litre. A Rs 2.50 agriculture infrastructure and improvement cess is levied on high of this.
Equally, on diesel, the essential excise obligation is Rs 1.80 a litre. Rs 8 per litre every is charged as particular extra excise obligation and highway and infrastructure cess whereas a Rs 4 per litre agriculture infrastructure and improvement cess can be levied.
“Devolution to state governments is made out of the essential excise obligation part on the idea of the system prescribed by the Finance Fee every now and then. At current, the speed of primary excise obligation is Rs 1.40 per litre on petrol and Rs 1.80 per litre on diesel,” he mentioned.
Complete excise assortment from gas was Rs 2.22 lakh crore in 2016-17, which inched as much as Rs 2.25 lakh crore within the following 12 months however fell to Rs 2.13 lakh crore in 2018-19.
Petrol and diesel is at present not below the Items and Companies Tax (GST) regime and states levy VAT on high of the excise obligation charged by the centre.
“The entire quantity of tax collected below VAT on gas throughout numerous states from April 2016 to March 2021 is Rs 9.57 lakh crore,” he mentioned.
This compares to Rs 12.11 lakh crore collected by the central authorities throughout the identical 5 12 months interval, in response to the minister’s reply.



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