The stupendous surge in excise duty on petrol and high-speed diesel helped the government collect nearly 40 percent of its indirect tax kitty from the two auto fuels in 2015-16, compared to 34 per cent in the previous financial year.
A study by the Comptroller and Auditor General (CAG) indicates that Union excise duty collection shot up almost 70 per cent from Rs 1.69 lakh crore during 2013-14 to Rs 2.87 lakh crore in 2015-16, with a majority of the contribution being from petrol, diesel, cigarettes and gutka. The indirect tax kitty includes duties from customs, central excise and service tax.
Excise revenue from petroleum products, which made up for 52 per cent of collections in 2013-14, went up to almost 69% during 2015-16 as the government resorted to a massive increase in levies in the wake of falling global prices.
Excise revenue from petroleum products, which comprised 52 percent of collections in 2013-14, went up to almost 69% during 2015-16 as the government resorted to a massive increase in levies in the wake of falling global prices.
The central excise duty on petrol and high-speed diesel increased from Rs 1.2 per litre and Rs 1.46 per litre to Rs 8.95 per litre and Rs 7.96 per litre respectively during the last two financial years.
Revenue from petroleum products went up from Rs 88,000 crore in 2013-14 to Rs 1.99 lakh crore in 2015-16. Tax on sin goods (mainly tobacco products) at Rs 21,000 crore was the second highest contributor to indirect taxes.
The high price of petrol and diesel in India was contrary to the international trend in crude oil prices that crashed from a high of USD 112 a barrel in 2014 to as low as USD 30.