#Coronavirus: Govt May Raise Petrol/Diesel Price By Rs 6 To Fight Virus Outbreak; Aims To Earn Rs 1.2 Lakh Cr From Higher Excise Duty
Coronavirus Pandemic outbreak has managed to change our lives completely. From isolation and working from home to online orders being delayed, the entire world is now topsy-turvy. There is no indication of when this virus will subside and what next change we will face.
A similar such change migh be the Government’s decision to hike the excise rates on fuels, viz., petrol and diesel.
Yes, the Government has indeed decided that the excise duty on petrol and diesel will be increased by Rs. 8 per litre, which is not an insignificant rise at all. This decision has been taken to mobilize additional resources that will be required to fight the Covid-19 virus.
Excise Duty On Petrol And Diesel To Be Increased By Rs. 8 Per Litre
Taking into account the rapid rate of spreading of the coronavirus, the Government has announced that additional resources will be mobilized
The Finance Bill 2020 introduced some amendments where the Finance Ministry has proposed to raise special additional excise duty on petrol. The duty on petrol that wass previously Rs. 10 per litre, would be increased to Rs. 18 per litre. In the case of diesel, the duty will be increased to Rs. 12 per litre from Rs. 4 per litre. These changes have been made by making amendments to the eighth schedule of the Finance Act 2002.
However, the government hasnt made it clear if the Rs. 8 increase in the special additional excise duty will be used as a cap to raise duties upto that level or if the government plans to notify the entire increase at once.
Excise Duty To Generate More Revenue As Demand Falls Due To Covid-19
Apparently, this hike is being implemented to generate more revenue as the demand has fallen due to the outbreak of the Covid-19.
The prices of fuels have been going down since February 2020. As of now, the total central excise duty on petrol is Rs. 22.98 per litre and Rs. 18.83 per litre for diesel fuel. The increase would bring the prices to Rs. 30.98 per litre on petrol and rs. 26.83 on diesel. Besides, states also levy VAT on these fuels.
As per reports, the official announcement that indicates the changes in the duty will come later.