Excise Duty Tweaks To Cost Exchequer Rs 5,500 Crore Fortnightly: CBIC Chief

New Delhi: Central Board of Indirect Taxes and Customs (CBIC) chairman Vivek Chaturvedi on Friday said that the excise duty cut would result in a revenue loss of around Rs 7,000 crore, while the hike in special additional excise duty on export of diesel and ATF will fetch Rs 1,500 crore more in a fortnight, resulting in a total revenue loss of Rs 5,500 crore to the exchequer fortnightly.

After reduction in excise duty, the incidence of excise on petrol will be Rs 11.9 per litre (Rs 1.40 basic excise duty, Rs 3 special additional excise duty, Rs 2.50 agriculture infrastructure and development cess, and Rs 5 road infrastructure cess). On diesel and aviation turbine fuel (ATF), an export duty of Rs 21.5 per litre and Rs 29.5 per litre has been imposed effective March 26. The rates will be reviewed on a fortnightly basis.

The move to levy export duty on diesel and ATF is to prioritise domestic availability of diesel and ATF and ensure energy security for the country in the midst of global uncertainty which has been exacerbated by a disruption in supply chain", Chaturvedi said at a media briefing. “Excise duty cut on petrol, diesel is aimed at reducing under-recoveries of oil marketing companies (OMCs) and ensuring prices do not rise for consumers on account of the ongoing crisis,” he said.

“The situation is dynamic, it is not business as usual where you would have a predictability that certain metric tonne of goods will come. We are living in difficult times. Any (revenue) implication will have to factor in actual supply of goods coming into the country,” Chaturvedi said.