economy News

Unbound

Excise duty on petrol & Diesel Hiked by Rs 1.6 and 40 paisa

... HT Mint:

The government on Friday night hiked excise duty on petrol by Rs1.60 per litre and the same on diesel by 40 paisa a litre to mop up additional revenue to meet budgetary targets.

The basic excise duty on unbranded or normal petrol was increased from Rs5.46 per litre to Rs7.06 a litre, according to a CBEC notification. After including additional and special excise duty, the total levy on petrol will be Rs19.06 per litre as against present levy of Rs17.46.

Similarly on unbranded or normal diesel, excise duty has been increased from Rs4.26 per litre to Rs4.66 a litre. After including special excise duty, total incidence of excise duty on diesel will be Rs10.66 per litre as against present Rs10.26.

The excise duty on branded petrol has been hiked from Rs6.64 to Rs8.24 per lire. Special and additional excise duty of Rs12 per litre will continue as before.

On branded diesel, excise duty has been increased from Rs6.62 to Rs7.02 per litre. Additional excise duty of Rs6 per litre will continue as before.

The government had previously in four installments raised excise duty on petrol and diesel between November and January to take away the reduction in retail rates that was warranted from falling international oil prices.

The four excise duty hikes between November and January totalled Rs7.75 per litre on petrol and Rs6.50 a litre on diesel. The four excise duty hikes between November and January had led to about Rs20,000 crore in additional revenue to the government, helping it meet its fiscal deficit target.

Tax on petrol and diesel was first hiked by Rs1.50 a litre each from 12 November. Then again from 2 December, the excise duty on petrol was raised by Rs2.25 per litre and by Re1 on diesel. This was followed by the government hiking excise duty on petrol and diesel by Rs2 per litre each from 2 January and a similar proportion from 16 January.

READ MORE