Policy

Q1 excise duty collection on petrol, diesel over ₹94,000 crore

Our Bureau New Delhi | Updated on July 19, 2021

Net amount under this head for same period last year was ₹35,347 cr: CGA

The government has collected over ₹94,000 crore from central excise duty on petrol and diesel during April-June quarter of current fiscal, the Finance Ministry told Lok Sabha on Monday.

Though the written answer given by Minister of State for Finance Pankaj Choudhary does not have figures for the corresponding period of last fiscal, data released by the Controller General of Accounts (CGA) gives a comparative picture. The collection from central excise comes mainly from petrol and diesel and CGA said that net amount (gross minus refund) under this head for April-June period of FY21 was ₹35,347 crore.

When asked whether the government has room to cut the cess levied on petrol and diesel by ₹4.5 per litre to ease inflationary pressures without a net loss in revenue, Choudhary said that domestic prices of petrol and diesel have been market-determined since June 26, 2010 and October 19, 2010 respectively. Public sector oil marketing companies (OMCs) price petrol and diesel in line with the international product prices and other market conditions, he explained.

Excise duty hike

Justifying the excise duty hike during the last couple of years, he said, “The excise duty rates have been calibrated to generate resources for infrastructure and other developmental items of expenditure keeping in view the prevailing fiscal situation.”

Choudhary also mentioned that the average share of central excise duty on petroleum products from 2017-18 to 2020-21 in gross revenue collected by the Centre was 12 per cent.

On the issue of bringing petrol and diesel under GST, he said that Article 279 A (5) of the Constitution prescribes that the Goods and Service Tax Council will recommend the date on which the GST will be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel (ATF). Also, as per the Section 9(2) of the CGST Act, inclusion of these products in GST will require recommendation of the GST Council.

 

Published on July 19, 2021

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