The excise duties on petroleum products have increased by 48 percent in the April-July period of the current fiscal 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 data of the controller-general of the accounts,
The incremental collections amounted to Rs 32,492 crore during the April-July period of the current fiscal year, the data said.
Petrol and diesel are not subject to the Goods and Services Tax (GST) and are still subject to excise duties. Aviation Turbine Fuel (ATF) and natural gas are the other two commodities that are not subject to GST.
The increase in excise collection is mainly due to the increase in fuel sales, as the regionally imposed blockades have been relaxed and traffic movements have increased, especially during the above period. Increased sales of petrol and diesel led to an increase in excise duties.
Collections also rose as petrol and diesel prices rose steadily until a month ago, crossing Rs 100 per liter in several cities of the country.