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

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 yr 2020-21, out of which states got lower than Rs 20,000 crore, based on 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 said 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 yr 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 funds this yr. And it was lower by Rs 5 a litre on petrol and Rs 10 per litre on diesel this month after retail costs jumped to document excessive throughout the nation.
“The whole 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 full incidence of excise on petrol at the moment is Rs 27.90 a litre and that on diesel is Rs 21.80, states are entitled to get a share solely from the fundamental excise obligation.
Out of the full incidence of taxation, the fundamental excise obligation on petrol is Rs 1.40 a litre. On prime of this, particular further excise obligation is levied of Rs 11 and a street and infrastructure cess of Rs 13 a litre. A Rs 2.50 agriculture infrastructure and growth cess is levied on prime of this.
Equally, on diesel, the fundamental excise obligation is Rs 1.80 a litre. Rs 8 per litre every is charged as particular further excise obligation and street and infrastructure cess whereas a Rs 4 per litre agriculture infrastructure and growth cess can also be levied.
“Devolution to state governments is made out of the fundamental excise obligation element on the idea of the components prescribed by the Finance Fee every so often. At current, the speed of fundamental excise obligation is Rs 1.40 per litre on petrol and Rs 1.80 per litre on diesel,” he mentioned.
Complete excise assortment from gasoline was Rs 2.22 lakh crore in 2016-17, which inched as much as Rs 2.25 lakh crore within the following yr however fell to Rs 2.13 lakh crore in 2018-19.
Petrol and diesel is at the moment not below the Items and Providers Tax (GST) regime and states levy VAT on prime of the excise obligation charged by the centre.
“The whole quantity of tax collected below VAT on gasoline 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 yr interval, based on the minister’s reply.



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