Excise duty on petroleum products witnessed a jump of 48 per cent during April-July period of the current financial year i.e. 2021-22, as they stood at Rs 1 lakh crore, compared to Rs 67,895 crore during the corresponding period of last year, according to the Controller General of Accounts data,
The incremental collections were to the tune of Rs 32,492 crore during the April-July period of the current fiscal, the data said further.
Petrol and diesel don’t come under the purview of Goods and Services Tax (GST) and excise duty is still levied on them. Aviation Turbine Fuel (ATF) and natural gas are the other two commodities on which GST is not levied.
The increase in excise duty collections is mainly due to fuel sales going up as regionally imposed lockdowns have been eased and traffic movement has gone up, especially during the period mentioned above. The increased sale of petrol and diesel led to the rise in excise duty collections.
The collections also rose as petrol and diesel prices till a month back were consistently rising, crossing the Rs 100 per litre mark in several cities of the country.