Govt. To Not Increase Excise Duty Amid Slump In Global Crude Price

In a span of five days, auto fuel prices amid slump in global oil prices to their lowest since 1991 has fallen by a sharp amount and amid it and pressures on the government to increase its revenue, there are no indications from the government considering to raise excise duty on both petrol and diesel, as also to increase customs duty on crude.

Govt. To Not Increase Excise Duty Amid Slump In Global Crude Price

The prime reason for the same is that the move can hurt the slight recovery seen in some of the sectors of the economy.

Nonetheless, as per an official quoted in the ET report, the final decision shall be taken at the highest political level.

On crude petroleum, there is levied basic customs duty at the rate of Rs. 1 per tonne while there is additional countervailing duty of Rs. 1 per tonne and National Calamity and Contingency Duty of Rs 5 . Additionally, there is social welfare surcharge at the rate of 10% that is applied on all.

In July 2019, excise duty as well as cess on both petrol and diesel was raised by Rs. 1 per litre each and hence for petrol excise duty at the rate of Rs. 17.98 per litre while for diesel it is Rs. 13.83 per litre.

As crude prices have seen a huge fall in Monday's trade and this will augur well for India's fiscal situation, in the past it was seen that fall in prices was not passed to end consumers and instead the government resorted to hike excise duty to collect more revenue.

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