Finance Minister Nirmala Sitharaman moved an modification to the Finance Bill, 2020, to raise the restrict up to which the federal government can raise particular excise duty on petrol and diesel to Rs 18 per litre and Rs 12, respectively.
The modification together with the Finance Bill was handed with no debate in the Lok Sabha.
The authorities had on 14 March raised excise duty on petrol and diesel by Rs 3 per litre every to raise a further Rs 39,000 crore in income yearly. This duty hike included Rs 2 a litre improve in particular further excise duty and Re 1 in highway and infrastructure cess.
This hike took the particular further excise duty to most permissible in law — Rs 10 in case of petrol and Rs 4 in case of diesel.
Now, by means of an modification of the Eighth Schedule of the Finance Act, this restrict has been elevated to Rs 18 per litre in case of petrol and Rs 12 in case of diesel.
This is an enabling provision and no change in excise duty is being executed as of now, an official mentioned. The modification provides powers to the federal government to raise the duty by up to Rs 8 per litre in petrol and diesel at any time it needs.