NEW DELHI: A day just after the Union government slashed central excise responsibility on gasoline, Finance Minister Nirmala Sitharaman on Sunday mentioned its full load will be borne by the Centre as the reduction has been built in the Street and Infrastructure Cess, which is not shared with the states.
Excise responsibility on petrol and diesel has four elements — Basic excise duty, Particular More excise responsibility (SAED), Street and Infrastructure Cess (RIC) and Agriculture and Infrastructure Enhancement Cess (AIDC). Simple excise duty is sharable with states but SAED, RIC & AIDC are non-sharable, so states will not experience any revenue decline, Sitharaman mentioned in a sequence of tweets.
“The excise responsibility reduction of Rs 8/litre on petrol and Rs 6/litre on diesel (helpful from now) has solely been built in Highway & Infrastructure Cess (RIC). Even in November ’21, the reduction of Rs 5/litre in petrol and Rs 10/litre in diesel was fully made in RIC,” she extra.
Sitharaman also juxtapose the improvement expenditure incurred by the Modi authorities so considerably (2014-2022) as versus the UPA (2004-2014), indicating the figures have been Rs 90.9 lakh crore and Rs 49.2 lakh crore, respectively. The Modi government put in Rs 24.85 lakh crore on food, gasoline and fertiliser subsidies and Rs 26.3 lakh crore on money generation, although only Rs 13.9 lakh crore was used on subsidies during UPA rule, she explained.
Meanwhile, Maharashtra on Sunday joined the record of a several states that lower worth extra tax (VAT) on petrol (by Rs 2.08) and diesel (Rs 1.44). Kerala experienced on Saturday lower the point out tax on petrol and diesel by Rs 2.41 and Rs 1.36, respectively. Rajasthan will cut down VAT by Rs 2.48 on petrol and Rs 1.16 on diesel.
Centre to take Rs 2.2 lakh crore hit in a 12 months
Saturday’s excise duty lower would charge the Centre Rs 1 lakh crore for every annum. Income implication of the responsibility slice in November 2021 was Rs 1.2 lakh crore. So, overall income loss is Rs 2.2 lakh crore, Sitharaman explained.