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On making petrol and diesel cheaper, the Finance Minister said this big thing, only the central government will bear the burden – News

Excise Duty on Petrol-Diesel: The Central Government has cut the excise duty on petrol and diesel late last evening, after which you will have to spend less money to buy petrol and diesel. After this cut, the opposition has targeted the government… Let us tell you what Finance Minister Sitharaman said about this. Finance Minister Nirmala Sitharaman has rejected the opposition’s allegations, saying that the excise duty cut on vehicle fuel will affect the share of states in central taxes.

Road and infrastructure tax cut
Sitharaman said on Sunday that a reduction of Rs 8 in petrol and Rs 6 in diesel has been made in the road and infrastructure tax levied on these fuels, the collection of which is never shared with the states. In such a situation, this allegation of the opposition is not true.

States’ share will be reduced
Former finance minister P Chidambaram and other opposition leaders had said that the government’s announcement of reduction in excise duty on Saturday evening will reduce the share of states in central taxes. However, later on Sunday, Chidambaram withdrew his statement, saying that the burden of cutting taxes would be borne by the central government alone.

Finance Minister tweeted
Sitharaman wrote on Twitter that she is sharing useful information about the tax levied on petrol and diesel which will be beneficial for all. He said, “There is an excise duty on petrol and diesel including Basic Excise Duty (BED), Special Additional Excise Duty, Road and Infrastructure Tax and Agriculture and Infrastructure Development Tax. The basic excise duty is shared with the states. Whereas SAED, RIC and AIDC are not shared.

There was also a cut in November
The Finance Minister said that the excise duty deduction of Rs 8 per liter on petrol and Rs 6 per liter on diesel has been done completely in RIC. In November 2021, when petrol was reduced by Rs 5 per liter and diesel by Rs 10 per liter, the deduction was made in RIC itself.

41 percent goes to the states
Under the centre-state tax sharing system, 41 per cent of the tax collected by the Center goes to the states. However, these do not include tax collected by way of levy by way of cess. Most of the taxes levied on petrol and diesel are ‘cess’.

Know how much is the tax share?
Before Saturday’s cut, the central tax on petrol was Rs 27.90 per liter. The basic excise duty was only Rs 1.40 per litre. Similarly, there was a total central tax of Rs 21.80 on diesel and the basic excise duty was only Rs 1.80.

The special additional excise duty on petrol was Rs 11 per liter and Rs 8 on diesel. AIDC was Rs 2.50 per liter on petrol and Rs 4 per liter on diesel. Additional excise duty of Rs 13 per liter on petrol was levied as RIC and such duty of Rs 8 per liter on diesel was levied. Excise duty deduction has been done in this on Saturday. The BED collection of only Rs 1.40 per liter on petrol and Rs 1.80 per liter on diesel is shared with the states.

2,20,000 crore will have an impact
Sitharaman said, “Basic excise duty which is shared with the states has not even been touched. Therefore, the Center will bear the burden of the tax cut twice (first cut in November and second on Saturday).” He said that the tax deducted yesterday will cost the Center Rs 1,00,000 crore. The tax deducted in November 2021 has cost the Center Rs 1,20,000 crore per annum. There will be a total impact of Rs 2,20,000 crore on the Centre’s revenue.

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