{"id":114650,"date":"2021-06-25T11:30:44","date_gmt":"2021-06-25T06:00:44","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=114650"},"modified":"2021-07-01T11:40:15","modified_gmt":"2021-07-01T06:10:15","slug":"excise-duty-helps-fill-centres-fiscal-gap","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/excise-duty-helps-fill-centres-fiscal-gap\/","title":{"rendered":"Excise duty helps fill Centre\u2019s fiscal gap"},"content":{"rendered":"\n<p>&nbsp;<\/p>\n<p><strong>What is the News?<\/strong><\/p>\n<p>According to the data from the Controller General of Accounts (CGA), Excise duty mostly from petrol and diesel has helped the government overcome a major gap in its revenue in FY21.<\/p>\n<h5><strong>How much tax do we pay on petrol and diesel?<\/strong><\/h5>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: disc;\">\n<li><strong>The Union government <\/strong>levies excise duty and cess on fuel and states levy a value-added tax(VAT).<\/li>\n<li><strong>Taxes together constitute<\/strong> 58% of the retail selling price of petrol and around 52% of the retail selling price of diesel at present.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h5><strong>How much did the Centre earn on excise duty from Petrol and Diesel?<\/strong><\/h5>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: disc;\">\n<li><strong>The receipts <\/strong>from excise duty collected mostly from petrol and diesel has increased by almost 63% to \u20b93.89 trillion in FY21 from the year-ago period.<\/li>\n<li><strong>Moreover, <\/strong>the sharp rise in excise duty receipts has also helped to boost overall tax collections.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h5><strong>What about GST and Direct Taxes?<\/strong><\/h5>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: disc;\">\n<li><strong>The receipts <\/strong>from goods and services tax (GST) revenue has reduced by 7.6% in FY21 to \u20b94.56 trillion.<\/li>\n<li><strong>On the direct tax side,<\/strong> the share of corporate tax collections in the Centre\u2019s gross tax receipts too declined in FY21 from a year ago while that of personal income tax remained more or less the same.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Why has Excise Duty from Petrol and Diesel became a major revenue for the Government?<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: disc;\">\n<li><strong>The government of India <\/strong>has given full tax rebate to those with taxable incomes of up to \u20b95 lakh and revamped the tax slab system to offer a flexible alternative plan to those who do not avail of tax incentives.<\/li>\n<li><strong>In addition, <\/strong>businesses not availing incentives and new factories were offered a concessional tax rate regime.<\/li>\n<li><strong>Hence, <\/strong>due to this collection of excise duty from Petrol and Diesel has become the preferred revenue source for central and state governments.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Source: <a href=\"https:\/\/epaper.livemint.com\/Home\/MShareArticle?OrgId=2464b694d72&amp;imageview=0\">Livemint<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; What is the News? According to the data from the Controller General of Accounts (CGA), Excise duty mostly from petrol and diesel has helped the government overcome a major gap in its revenue in FY21. How much tax do we pay on petrol and diesel? The Union government levies excise duty and cess on&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/excise-duty-helps-fill-centres-fiscal-gap\/\">Continue reading <span class=\"screen-reader-text\">Excise duty helps fill Centre\u2019s fiscal gap<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[8043,1566,3127,9],"tags":[8113,8205,2634,3599,8206,8209,8208,8207],"class_list":["post-114650","post","type-post","status-publish","format-standard","hentry","category-current-affairs-cat","category-daily-factly-articles","category-economy","category-public","tag-cess","tag-cga","tag-diesel","tag-direct-tax","tag-excise","tag-excise-duty","tag-petrol","tag-vat","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704897447},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=114650"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/114650\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=114650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=114650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=114650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}