Excise duty collection up 48% in FY21

Excise duty collection up 48% in FY21

New Delhi: Although almost every type of tax collection has come down due to the epidemic, but excise duty collection has increased by 48 percent during the current financial year. The reason for this is the record increase in the excise rate on diesel and petrol. According to data received from the Comptroller and Auditor General (CGA), the collection of excise duty during April-November 2020 increased from Rs 1,32,899 crore in the same period of 2019 to Rs 1,96,342 crore.

This increase in excise duty collection occurred during the eight-month period of the current financial year, despite a decrease of over one crore tonnes in diesel sales. Diesel is the most consumed fuel in India. According to data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum, diesel sales during April to November 2020 fell to 49.4 million tonnes from 5.54 million tonnes a year earlier. During this time, the consumption of petrol also decreased from 2.04 million tonnes a year ago to 1.74 crore tonnes.

Industry sources say that despite the slowdown in the economic sector, the main reason for the increase in excise collection is the record increase in tax rates on petrol and diesel. The government has increased the excise duty on petrol twice by Rs 13 per liter and on diesel by Rs 16 per liter during the current financial year. This increased the excise duty on petrol to Rs 32.98 per liter and on diesel to Rs 31.83 per liter. The retail price of petrol in Delhi is Rs 84.70 per liter and the price of diesel is Rs 74.88 per liter. According to the data of the Comptroller and Auditor General, the total excise duty receipts in the entire financial year 2019-20 has been Rs 2,39,599 crore.

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