Technoglitch
Core Member
The government today increased excise duty on petrol by Rs 0.30 per litre and by Rs 1.17 a litre on diesel to make use of slump in oil prices to garner an additional Rs 2,500 crore.
Basic excise duty on unbranded petrol has been increased from Rs 7.06 per litre to Rs 7.36 and the same on unbranded diesel from Rs 4.66 to Rs 5.83 per litre.
Finance Minister Arun Jaitley said the increase in duty will yield an additional Rs 2,500 crore in revenue during the remainder of the 2015-16 fiscal which ends on March 31, 2016.
After including additional and special excise duty, the total levy on unbranded petrol will be Rs 19.36 per litre as against Rs 19.06 currently.
Similarly, on unbranded or normal diesel, total excise duty after including special excise duty will be Rs 11.83 per litre as compared to Rs 10.66 now.
For a government which is facing a likely shortfall in direct tax mobilisation, the two excise duty hikes have yielded Rs 5,700 crore.
Prior to the two hikes since November, the government had previously in four installments raised excise duty on petrol and diesel between November 2014 and January 2015 to take away the reduction in retail rates that was warranted from falling international oil rates.
The four excise duty hikes during this period totalled Rs 7.75 per litre on petrol and Rs 6.50 a litre on diesel. It led to about Rs 20,000 crore in additional revenue to the government, helping it meet its fiscal deficit target.
Govt hikes excise duty on petrol, diesel to mop up Rs 2,500 crore | Business Standard News
Basic excise duty on unbranded petrol has been increased from Rs 7.06 per litre to Rs 7.36 and the same on unbranded diesel from Rs 4.66 to Rs 5.83 per litre.
Finance Minister Arun Jaitley said the increase in duty will yield an additional Rs 2,500 crore in revenue during the remainder of the 2015-16 fiscal which ends on March 31, 2016.
After including additional and special excise duty, the total levy on unbranded petrol will be Rs 19.36 per litre as against Rs 19.06 currently.
Similarly, on unbranded or normal diesel, total excise duty after including special excise duty will be Rs 11.83 per litre as compared to Rs 10.66 now.
For a government which is facing a likely shortfall in direct tax mobilisation, the two excise duty hikes have yielded Rs 5,700 crore.
Prior to the two hikes since November, the government had previously in four installments raised excise duty on petrol and diesel between November 2014 and January 2015 to take away the reduction in retail rates that was warranted from falling international oil rates.
The four excise duty hikes during this period totalled Rs 7.75 per litre on petrol and Rs 6.50 a litre on diesel. It led to about Rs 20,000 crore in additional revenue to the government, helping it meet its fiscal deficit target.
Govt hikes excise duty on petrol, diesel to mop up Rs 2,500 crore | Business Standard News