New Delhi: The authorities will look to reduce prices of petrol and diesel by way of a minimize in taxes when the time comes, the top of the company chargeable for excise and different oblique tax collections stated on Tuesday.
Record excise responsibility on petrol and diesel helped oblique tax collections rise by greater than 59 per cent within the fiscal 12 months ended March 31 (2020-21) when in comparison with the earlier 12 months.
“We are very hopeful that revenue in the coming months is going to be very strong,” Central Board of Indirect Taxes and Customs (CBIC) Chairman M Ajit Kumar stated over a video name with journalists to provide out tax assortment numbers.
“As far as reduction in fuel prices are concerned, it is a matter that is being looked into constantly and I am as sure as and when the time comes, a view will be taken on that,” he stated.
He was requested if the federal government was contemplating decreasing excise responsibility on petrol and diesel to provide aid to shoppers.
He, nevertheless, didn’t elaborate on the timing.
The authorities final 12 months raised excise responsibility on petrol by Rs 13 per litre and that on diesel by Rs 16. Excise responsibility on petrol now totals Rs 32.90 a litre and makes up for 36 per cent of the Rs 90.56 a litre retail promoting worth of the gas in Delhi.
Excise responsibility on diesel totals Rs 31.80 and makes up for 39 per cent of the retail promoting worth of Rs 80.87.
Together with state VAT, taxes make up for 55-60 per cent of the value that customers pay.
Petrol prices crossed Rs 100-mark in some locations in Rajasthan, Maharashtra and Madhya Pradesh in February as worldwide oil soared. But as quickly as elections to 5 states together with West Bengal, Tamil Nadu and Kerala have been introduced, the prices hit a freeze button.
And they declined a bit when worldwide prices dipped on worries about demand restoration amid a resurgence?of Covid an infection. Petrol had hit an all-time excessive of Rs 91.17 a litre in Delhi in February and diesel touched a report Rs 81.47.
CBIC member (Budget) Vivek Johri stated a 59.2 per cent development in excise collections is partly “explained by an increase in the rate of tax”.
“If there is a cut that will have an impact on revenue collection from excise,” he stated.
Also, there was a dip in consumption as states imposed partial lockdowns to curb the unfold of coronavirus an infection.
“Because of Covid, you would have seen recent reports of a dip in consumption of petroleum products, particularly diesel, motor spirits (petrol) and other fuels. So revenue will be a function of where the rates settle, if at all there is a change in the rates, and the level of consumption that we see in the economy,” he stated.
Last month, Oil Minister Dharmendra Pradhan had advised Parliament that the tax collected on petrol and diesel was Rs 52,537 crore in 2013, which rose to Rs 2.13 lakh crore in 2019-20 and swelled additional to Rs 2.94 lakh crore within the first 11 months of 2020-21 fiscal.
The CBIC didn’t individually give excise assortment on petrol and diesel for 2020-21 fiscal.
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