Petrol price was increased by Rs 2.45 a litre and diesel by Rs 2.36 per litre on Saturday after Finance Minister Nirmala Sitharaman presented the first full-time Budget of the Modi 2.0 government. Petrol in Delhi now costs Rs 72.96 a litre and diesel is priced at Rs 66.69 per litre.
The Centre raised the special additional excise duty and road and infrastructure cess each one by Rs 1 a litre on both petrol and diesel. With this, fuel prices across the country will witnesses a significant rise, given to the fact that Petroleum products, being cash cows for the exchequer, fetch huge revenue.
"I propose to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a litre on petrol and diesel," the Union Minister was quoted as saying at Parliament.
Currently, petrol attracts excise duty of Rs 17.98 per litre, while VAT levied on petrol amounts to Rs 14.98. In case of diesel, the government charges Rs 13.83 per litre excise duty and Rs 9.47 per litre VAT. However, the VAT on petrol and diesel varies from state to state.
Apart from petrol and diesel, the customs duty on gold was also increased to 12.5 per cent from existing 10 per cent. 5 per cent customs duty is also imposed on imported books, to promote domestic publishing and printing industry.
Sitharaman said surcharges on individuals having taxable income of Rs 2 crore to Rs 5 crore; and Rs 5 crore and more have been raised. She also said there will be no merchant discount rate (MDR) charges on digital transaction made at big establishments having annual turnover of more than Rs 50 crore.
The finance minister also announced TDS (tax deducted at source) of 2 per cent on cash withdrawal of more than Rs 1 crore from a bank account. She said faceless assessment of tax returns in electronic mode is being launched this year in a phased manner.