Home » Excise from petrol, diesel up 88% at Rs 3 lakh crore in FY21

Excise from petrol, diesel up 88% at Rs 3 lakh crore in FY21

    NEW DELHI: In spite of lower sales due to the pandemic, the Centre’s tax collection from petrol and diesel in 2020-21 spiked 88% to more than Rs 3 lakh crore — a record led by a 108% jump in mop-up from diesel — as a result of last year’s sharp increase in excise duty.
    The Centre had raised excise duty by Rs 13 per litre on petrol and Rs 16 on diesel between March-end and May 2020 when oil prices crashed due to the pandemic. The revisions raised excise duty by 65% on petrol from Rs 19.98 to Rs 32.98 a litre and 79% on diesel from Rs 15.83 to Rs 28.35.
    As a result, collection from diesel — the most-consumed fuel — more than doubled to Rs 2.3 lakh crore from Rs 1,12,032 crore in 2019-20. Mop-up from petrol swelled 53% to more than Rs 1 lakh crore from Rs 66,279 crore in the pre-pandemic fiscal, the government informed the Lok Sabha on Monday.
    The higher excise collection from petrol and diesel raised the overall tax collection from petroleum products, including jet fuel, natural gas and cess on domestic crude, by 74% to Rs 3.4 lakh crore, the government said in a written reply.
    The overall excise collection in the April-June quarter of the current financial year stood at more than Rs 1 lakh crore, the government told the House in response to a separate question.
    The Centre had jacked up the excise duty to generate revenue to fund its fight against Covid by sucking out windfall gains made by staterun refiners when oil prices crashed. The states followed suit by raising VAT.

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