The incremental collections of Rs 32,492 crore within the first 4 months of the fiscal yr 2021-22 (April 2021 to March 2022) is three-times the Rs 10,000 crore legal responsibility that the federal government has within the full yr in direction of compensation of oil bonds that have been issued by the earlier Congress-led UPA authorities to subsidise gasoline.
The authorities’s collections from levy of excise obligation on petroleum merchandise jumped 48 per cent within the first 4 months of the present fiscal yr, with the incremental mop-up being 3-times of the compensation legal responsibility of legacy oil bonds within the full fiscal yr, official information confirmed.
Data obtainable from the Controller General of Accounts within the Union Ministry of Finance confirmed excise obligation collections throughout April-July 2021 surging to over Rs 1 lakh crore, from Rs 67,895 crore mop-up in the identical interval of the earlier fiscal.
After the introduction of the Goods and Services Tax (GST) regime, excise obligation was levied solely on petrol, diesel, ATF and pure gasoline. Barring these merchandise, all different items and companies are beneath the GST regime.
The incremental collections of Rs 32,492 crore within the first 4 months of the fiscal yr 2021-22 (April 2021 to March 2022) is three-times the Rs 10,000 crore legal responsibility that the federal government has within the full yr in direction of compensation of oil bonds that have been issued by the earlier Congress-led UPA authorities to subsidise gasoline.
The bulk of excise obligation assortment is from the levy on petrol and diesel and with gross sales selecting up with a rebounding economic system, the incremental collections within the present yr could also be over Rs 1 lakh crore when put next with the earlier yr, trade sources mentioned. In all, the UPA authorities had issued Rs 1.34 lakh crore value of bonds (equal to a sovereign dedication to pay in future) to state-owned oil corporations to compensate them for promoting gasoline akin to cooking gasoline LPG, kerosene and diesel at charges beneath price. Of this, Rs 10,000 crore is because of be repaid within the present fiscal, in keeping with the finance ministry.
First, Finance Minister Nirmala Sitharaman after which Oil Minister Hardeep Singh Puri had blamed the oil bonds for limiting fiscal house to offer reduction to folks from gasoline costs buying and selling at a near-record excessive. Sitharaman had final month dominated out a reduce in excise obligation on petrol and diesel to ease costs, saying funds in lieu of previous subsidised gasoline pose limitations. She put the entire legal responsibility that the BJP authorities has to service at Rs 1.3 lakh crore.
On September 2 — a day after Congress chief Rahul Gandhi launched a scathing assault on the federal government for elevating cooking gasoline costs — Puri put the entire legal responsibility at over Rs 1.5 lakh crore.
Excise obligation on petrol was hiked from Rs 19.98 per litre to Rs 32.9 final yr to recoup achieve arising from worldwide oil costs plunging to multi-year low as pandemic gulped demand.
Of the Rs 1.34 lakh crore of oil bonds, solely Rs 3,500 crore of principal has been paid and the remaining Rs 1.3 lakh crore is due for compensation between this fiscal and 2025-26, in keeping with info made obtainable by the Finance Ministry.
(PTI)