Economy

In last 3 fiscal years, government earned over Rs 8 lakh crore from taxes on petrol and diesel – FM Sitharaman

On Tuesday, Finance Minister Nirmala Sitharaman told Parliament that the Centre has earned about Rs 8.02 lakh crore from petrol and diesel taxes over the last three fiscal years, with more than Rs 3.71 lakh crore in FY21 alone. The minister was answering concerns concerning the three-year increase in gasoline and diesel excise duty, as well as the money earned by other fuel taxes.

government earned over Rs 8 lakh crore from taxes on petrol and diesel

The excise duty on petrol raised from Rs 19.48 per litre on October 5, 2018, to Rs 27.90 per litre from November 4, 2021. According to Sitharaman’s written response in the Rajya Sabha, the levy on fuel rose from Rs 15.33 to Rs 21.80 per litre during the same period. Petrol excise fell from Rs 19.48 per litre on October 5, 2018 to Rs 17.98 on July 6, 2019, while diesel excise fell from Rs 15.33 to Rs 13.83.

Excise charges on petrol and gasoline rose to Rs 32.98 and Rs 31.83 per litre on February 2, 2021, before reducing a smidgeon on November 4, 2021, to Rs 27.90 per litre (petrol) and Rs 21.80 per litre (diesel).

“The central excise duty received from petrol and diesel during the last three years have been Rs 2,10,282 crore in 2018-19, Rs 2,19,750 crore in 2019-20, and Rs 3,71,908 crore in 2020-21,” Sitharaman said. The government reduced excise rates on gasoline and diesel by Rs 5 and Rs 10 per litre, respectively, on November 4, just before Diwali. The value added tax (VAT) on the two fuels was then reduced in some states.

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