The authorities will look to cut back costs of petrol and diesel by means of a reduce in taxes when the time comes, the top of the company answerable for excise and different oblique tax collections mentioned on Tuesday.
Record excise responsibility on petrol and diesel helped oblique tax collections rise by greater than 59 per cent within the fiscal yr ended March 31 (2020-21) when in comparison with the earlier yr.
“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 mentioned over a video name with journalists to present 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 mentioned.
He was requested if the federal government was contemplating lowering excise responsibility on petrol and diesel to present aid to customers.
He, nevertheless, didn’t elaborate on the timing.
The authorities final yr 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 gasoline 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 worth that customers pay.
Petrol costs 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 costs hit a freeze button.
And they declined a bit when worldwide costs 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 file Rs 81.47.
CBIC member (Budget) Vivek Johri mentioned a 59.2 per cent progress 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 mentioned.
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 mentioned.
Last month, Oil Minister Dharmendra Pradhan had instructed 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.
