Gasoline tax: central government tax collection on gasoline, diesel jumps 300% in six years

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NEW DELHI: Central government tax collections on gasoline and diesel have jumped more than 300% in the past six years as excise duties on both fuels were increased, Lok Sabha said on Monday .
The central government collected Rs 29,279 crore on excise duty on gasoline and Rs 42,881 crore on diesel in 2014-15 – the Modi government’s first year in office.
Collections on gasoline and diesel reached 2.94 lakh crore in the first 10 months of the current fiscal year (2020-21), according to information provided by Minister of State Anurag Singh Thakur in a response written to a question in the Lok Sabha.
In addition to excise duties on natural gas, the central government collected in 2014-15 Rs 74,158 crore, which rose to Rs 2.95 lakh crore from April 2020 to January 2021.
He said taxes levied on gasoline, diesel and natural gas as a percentage of total revenue fell from 5.4% in 2014-15 to 12.2% this fiscal year.
Excise duty on gasoline has dropped from Rs 9.48 per liter in 2014 to Rs 32.90 per liter now, while the same amount on diesel has increased from Rs 3.56 per liter to Rs 31.80 Rs.
Taxes represent 60% of the current retail price of petrol at Rs 91.17 per liter in Delhi. Excise duties represent 36 percent of the retail price.
Over 53% of the retail price of Rs 81.47 per liter of diesel in Delhi is made up of taxes. As much as 39 percent of the retail price includes central excise.
“The total central excise duty (including basic excise duty, taxes and surcharge) has been increased by Rs 3 per liter on gasoline and diesel as of March 14, 2020. It has again been revised upwards by Rs 10 per liter on gasoline and Rs. 13 per liter on diesel as of May 6, 2020, ”Thakur said.
These increases took away the gain that consumers would have derived from a sharp drop in international oil prices.
The excise tax hike is similar to the tax hike the government made between November 2014 and January 2016.
In nine installments, the duty rate on gasoline was increased by 11.77 rupees per liter and that on diesel by 13.47 per liter during those 15 months.
The government reduced excise duties by Rs 2 in October 2017 and by Rs 1.50 a year later. But he increased the excise duty by Rs 2 per liter in July 2019.
“Excise duty rates have been calibrated to generate resources for infrastructure and other development spending taking into account the current fiscal situation,” he added.


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