New Delhi: Government collection of levies customs duties on petroleum products has risen 33 percent in the first six months of the current fiscal compared to last year and 79 percent more than the pre-covid, official data showed.
Data available from the Controller General Accounts (CGA), Union Ministry of Finance showed customs collection during April-September 2021 surged to over Rs 1.71 lakh crore, from Rs 1.28 lakh crore mop-up on the same period the previous fiscal , Thanks to the steep rise in excise duty rates, the collection is 79 percent more than Rs 95 930 crore mop-up in April-September 2019.
In the full 2020-21 fiscal, excise tax collection was Rs 3.89 lakh crore and in 2019-20, it was Rs 2:39 lakh crore, the data showed CGA.
After the introduction of the tax regime and services (GST), excise duty is only levied on petrol, diesel, ATF and natural gas.
Prohibit these products, all other goods and services are under the GST regime.
From the collection of taxes of Rs 2.3 Lakh Crore in 2018-19, Rs 35 874 crore was transferred to the states, according to the CGA.
In the previous 2017-18 fiscal, Rs 71 759 crore was devolved to the state of the collection of RS 2.58 lakh crore.
Additional collection of Rs 42 931 crore in the first six months of fiscal year 2021-22 (April 2021 to March 2022) is four times the accountability of RS 10,000 crore to the government’s full-year payment to the oil bonds issued.
by the UPA government led by the Congress prior to subsidize fuel.
Collection of customs duties is of levy on petrol and diesel and with sales taking with the economy rebounds, incremental collection in the current year may be more than Rs 1 lakh crore when compared with the previous year, according to industry sources.
Overall, the UPA government has issued bonds worth Rs 1.34 lakh (equivalent to the state’s commitment to pay in the future) to the state-owned oil companies to compensate them for selling fuels such as LPG cooking gas, kerosene and diesel at prices below this cost.
Of this, Rs 10,000 crore will be paid in the current fiscal, according to the Ministry of Finance.
First, Finance Minister Nirmala Sitharaman and then Minister of Oil Hardeep Singh Puri has blamed oil bonds to limit the fiscal space to provide relief to people from fuel trading at all-time high level.
Most of the collection of taxes derived from gasoline and diesel engines where the Modi government had picked up last year’s tax record.
Customs duty on petrol climbed from Rs 19.98 per liter to Rs 32.9 last year to regain profits arising from international oil prices fell to multi-year request pandemic.
At Diesel, duties hiked to Rs 31.80.
While the international price has since recovered to $ 85 and the request is returned, customs remained at the same level.
This has resulted in gasoline prices spiked above Rs 100-a-liter mark in all major cities and diesel crosses that level in more than a half dozen countries.
The total increase in gasoline prices since May 5, 2020 decision of the Government to raise the customs duty to record the total current level of Rs 37.38 per liter.
Diesel rates have during this period rose by Rs 27.98 per liter.
The government has raised the customs duty on petrol and diesel to mop hikes that will accrue to consumers of international oil prices hit as low as $ 19 per barrel.
Gasoline and diesel and cooking gas and kerosene sold at subsidized rates during the UPA government led by the previous Congress.
Instead of paying subsidies to bring parity between retail prices are artificially suppressed and costs have soared since international rates crossed $ 100 per barrel, then the government issuing oil bonds amounting to RS 1.34 lakh crore to state fuel retailers.
The oil bonds and interest paid now.
Of Rs 1.34 lakh crore oil bonds, principal only Rs 3,500 crore has been paid and the remaining Rs 1.3 lakh crore due to payments between fiscal and 2025-26, according to information provided by the Ministry of Finance.
The government had to pay Rs 10,000 crore this fiscal year (2021-22).
Rs 31 150 crore more will be repaid in the year 2023-24, Rs 52.860.17 crore in the next year and Rs 36 913 crore in 2025-26.
Minister of state for petroleum and natural gas Rameswar Teli was in July told Parliament that the union government’s tax collection on gasoline and diesel jumped by Rs 3.35 lakh crore in the year to March 31, 2021 (fiscal 2020-21) from Rs 1, 78 lakhs crore a year back.
Excise collection in the pre-pandemic of 2018-19 was Rs 2:13 lakh crore.