Excise duty on petrol and diesel may fall

In the past, the Center had reduced the excise duty at the rate of two rupees. Along with this, the state government asked to reduce sales tax. But less than half a dozen states reduced rates, it is not appropriate to reduce the rates by the reduction of earnings reduction by the rest.

New Delhi: If the Finance Ministry obeys the oil ministry, the general budget to be introduced on February 1 will reduce the incidence of petrol and diesel prices. Because, according to sources, the oil ministry wants a reduction in excise duty on petrol and diesel ie product tax.

The central government imposes excise duty on petrol at Rs 19.48 and diesel at 15.33 rupees per liter. In addition, in different states and union territories 6 to 40 per cent of petrol and 6 to 29 per cent of diesel sales tax / VAT is levied. In the past, the Center had reduced the excise duty at the rate of two rupees. Along with this, the state government asked to reduce sales tax. But less than half a dozen states reduced rates, it is not appropriate to reduce the rates by the reduction of earnings reduction by the rest.

According to the oil ministry sources, he has asked the Finance Ministry to reduce excise duty to provide some relief to the customers. It is worth mentioning that between November 2014 and January 2016, excise duties were increased nine times on petrol and diesel while at the same time the prices of crude in the international market were at the lower level. Now when the price is fast, the demand for reduction in excise duty is holding fast.

For the past some time there is a fire in the Indian basket of crude oil. At the same time, prices of petrol and diesel have also increased in the international market. The result of this was that the price of petrol and diesel continued to grow in the domestic market. From January 1, till now, petrol in Delhi has been costlier by Rs two and a half rupees and diesel has been costlier. Keep in mind that three things contribute to deciding the retail price of petrol and diesel - the cost of the Indian market of crude oil, the price of petrol and diesel in the international market and the cost of rupees against the dollar.

Petrol and diesel are excluded from the GST scope of goods and services. At this time, when the Central Government imposes excise duty on a fixed rate ie specific rate, the State Governments impose a sales tax on the basis of the price variant, ie, ad valorum. In other words, if the prices of crude oil and petrol and diesel are increased in the international market then the central government will not have any benefit, but the revenue of the state governments will increase. The reason for this is that if the basis for estimating the sales tax is high, then the tax will actually be higher