GoodTime Nation - Top WebStories in India

Government doubled in 2021 from excise duty on petrol and diesel, understand the full math of tax here


In the year 2019, the total excise duty on petrol was Rs 19.98 per liter and that on diesel was Rs 15.83 per liter. The government had increased the excise duty twice last year to Rs 32.98 per liter on petrol and Rs 31.83 on diesel. In this year’s budget, the duty on petrol was reduced to Rs 32.90 per liter and that on diesel to Rs 31.80 per liter. And this month, petrol was cut by Rs 5 per liter and diesel by Rs 10 per liter as retail prices hit a record high across the country. “In the financial year 2020-21, a total tax amount of Rs 19,972 crore was given to the state governments from the money collected under central excise duty,” Choudhary said.

read this also : Petrol, Diesel Price – Crude oil rolled again, this is the condition of petrol and diesel prices on the first day of the month

Know how tax is calculated and how it is calculated

The total excise duty on petrol currently stands at Rs 27.90 per liter and on diesel at Rs 21.80, with the states entitled to share only from the basic excise duty. Out of the total matters of taxation, the basic excise duty on petrol is Rs 1.40 per liter. In addition, special additional excise duty of Rs 11 and road and infrastructure cess of Rs 13 per liter is levied. On top of this, an agricultural infrastructure and development cess of Rs 2.50 is levied.

Similarly, the basic excise duty on diesel is Rs 1.80 per liter. Rs 8 per liter is charged as Special Additional Excise Duty and Road and Infrastructure Cess, while Rs 4 per liter of Agriculture Infrastructure and Development Cess is also levied.

“The share to be paid to the state governments is done from the basic excise duty component on the basis of the formula prescribed by the Finance Commission from time to time. At present, the rate of basic excise duty is Rs 1.40 per liter on petrol and Rs 1.80 per liter on diesel.

The total excise duty collection from fuel was Rs 2.22 lakh crore in the year 2016-17, which increased to Rs 2.25 lakh crore the next year, but declined to Rs 2.13 lakh crore in 2018-19. Petrol and diesel are currently not under the Goods and Services Tax (GST) regime and states levy VAT (Value Added Tax) in addition to the excise duty levied by the Centre.
“From April 2016 to March 2021, a total of Rs 9.57 lakh crore has been collected under VAT on fuel in different states,” he said.

Video: Will oil prices fall due to this decision of the government?

(Except for the headline, this news has not been edited by the NDTV team, it has been published directly from the Syndicate feed.)

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.