Excise collection has reached 80% more than pre-covid levels
According to official data from the Controller General of Accounts (CGA) showed that Government has collected excise duty of petroleum products more than 79% (almost 80%) compared to pre-covid levels and it has risen by 33% in the first six months of the current fiscal to the last year.
Ministry of Finance prepared the data through CGA which released data in which excise duty collections during April-September 2021 has surged to over Rs.1.71 lakh crore from Rs.1.28 lakh crore in the period of time of the previous fiscal. This surge has done due to steep hike in excise duty rates. In fiscal year 2020-21 excise collection was Rs.3.89 lakh crore and in fiscal year 2019-20 it was Rs.2.39 lakh crore. Excise duty is levied only on petrol, diesel, ATF (Aviation Turbine Fuel) and natural gas after the introduction of the Goods and Services Tax (GST) regime. Barring these products all other goods and services are under the GST regime.
Why government decided to raise excise duty?
Due to decision of the government to raise excise duty, the total increase in petrol prices since the May 5, 2020 has reached at the record levels now total Rs.37.38 per litre. This decision has been taken to pay oil bonds and the interest thereon which was issued by then government congress led-UPA government. UPA government had issued Rs.1.34 lakh crore oil bonds to the state-fuel retailers instead of paying for the subsidy on petrol, diesel, cooking gas and kerosene. The finance ministry has said that out of these unpaid amount only Rs.3,500 crore of principal has been paid and the remaining amount of Rs.1.3 lakh crore will be paid till the fiscal year 2025-26.
Related Questions & Answer:
Q1. Who is the current Controller General of Accounts (CGA)?
Ans. Deepak Das (1986- batch ICAS Officer)
Q2. What is the Excise duty?
Ans. An excise duty is one type of tax which is levied on goods produced within the country. Examples are Basic excise duty, Special excise duty, education cess etc.
Q3. How much collections were received from excise duty in fiscal year 2020-21?
Ans. Rs.3.89 Lakh crore
- Get FREE Study Materials & PDFs for IBPS, RBI, SBI, LIC AAO, LIC Assistant, NIACL & Other Exams Over the mail and Whatsapp
- Click here to Get Daily Wise Current Affairs
Click to Subscribe Our Youtube Channel for Free Complete Banking & Insurance Course
Click here to Buy Bank & insurance Yearly Online Test Series
Download Online Mock Test Mobile APP