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Tuesday, January 25, 2022

When will the prices of petrol and diesel fall? CBIC chairman told

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Direct tax collection on record petrol and diesel (Petrol-Diesel) was 59 percent higher on an annual basis in the financial year 2020-21, ending March 31.

When the time comes, the government will decide to cut excise duty on petrol and diesel.

Central Board of Direct Taxes (CBIC) chairman M Ajit Kumar said that the government would consider reducing the price of petrol and diesel by cutting taxes when the appropriate time comes. Direct tax collections from record excise duty on petrol and diesel (Petrol-Diesel) increased by 59 per cent year-on-year in the financial year 2020-21 ended March 31. Regarding giving information about tax data, he said, we hope that the revenue will be good in the coming months.

Kumar said, as far as the reduction in fuel prices is concerned, the government is constantly monitoring the matter and I am confident that whenever the time comes, a decision will be taken in this regard. He was asked whether the government was considering cutting excise duty on petrol and diesel to give relief to customers. However, he did not give detailed information about the appropriate time.

Government levies so much tax on petrol and diesel

Last year, the government had increased excise duty on petrol by Rs 13 per liter, while on diesel by Rs 16 per liter. The excise duty on petrol is now 32.90 rupees per liter. Petrol rate in Delhi is Rs 90.56 per liter and excise duty is 36 percent in it.

The excise duty on diesel is Rs 31.80 per liter and the excise duty is 39 per cent of its retail selling price of Rs 80.87 per liter. Adding the value added tax (VAT) of the states, the share of the total tax in the retail prices of these fuels is 55 to 60 per cent.

Petrol price crosses Rs 100 in some states

In the international market, due to the rise in the price of crude oil, in some parts of the country, Rajasthan, Maharashtra and Madhya Pradesh, the price of petrol reached Rs 100 per liter in February.

Although assembly elections were announced in five states, including West Bengal, Tamil Nadu and Kerala, the price hike was halted.

CBIC member (budget) Vivek Johri said that one reason for the 59.2 percent increase in excise duty collection is the increase in the petroleum tax rate. He said, if there is a deduction, the revenue collection from excise duty will be affected.

Last month, Petroleum Minister Dharmendra Pradhan said in Parliament that tax collection on petrol and diesel was Rs 52,537 crore in 2013, which increased to Rs 2.13 lakh crore in 2019-20. At the same time, it increased to Rs 2.94 lakh crore in the first 11 months of 2020-21.

CBIC did not separately provide data on excise duty collection on petrol and diesel in 2020-21.

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(With language input)

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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