Govt excise collection up by 48% in April-July quarter

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In the first quarter of the current fiscal year, the government’s collections from the levy of excise duty on petroleum products have jumped 48%. As per the official data, the incremental mop-up is 3 times the repayment liability of legacy oil bonds in the full fiscal. During April-July 2021 excise duty collections increased to over Rs 1 lakh crore, from Rs 67,895 crore mop-up in the same period of the previous fiscal, as per the information available with the Controller General of Accounts in the Union ministry of finance.

The excise duty is levied only on petrol, diesel, ATF and natural gas. All other goods and services come under the purview of the GST regime. The incremental collections in the first four months of the fiscal year 2021-22 (April 2021 to March 2022) are Rs 32,492 crore.

This is three times the Rs 10,000 crore liability that the government has in the full year towards repayment of oil bonds that were issued by the previous Congress-led UPA government to subsidise fuel. The majority of the collection on excise duty is from petrol and diesel levy. As the economy is reviving, the sales are picking up.

The incremental collections in the current year may be over Rs 1 lakh crore when compared with the previous year, industry sources said.