NEW DELHI: Finance Minister Nirmala Sitharaman said the excise duty reduction of 8 rupees per litre on petrol and 6 rupees per litre on diesel has entirely been made in Road and Infrastructure Cess, RIC.
In a series of tweets, Sitharaman said that even in November last year, the reduction of 5 rupees per litre in petrol and 10 rupees per litre in diesel was entirely made in RIC. Basic Excise Duty, Special Additional Excise duty, Road and Infrastructure Cess and Agriculture and Infrastructure Development Cess together constitute Excise Duty on petrol and diesel. She said Basic Excise Duty is sharable with states and Special Additional Excise duty, Road and Infrastructure Cess and Agriculture and Infrastructure Development Cess are non-sharable.
The Finance Minister stressed that Basic ED which is sharable with states has not been touched. She said that therefore, the entire burden of these two duty cuts made in November last year and yesterday is borne by the Centre.
The duty reduction made yesterday has an implication of one lakh crore rupees a year for Centre. The duty reduction made in November last year has an implication of 1 lakh 20 thousand crore rupees a year for Centre. Total revenue implication to Centre, on these two duty cuts is 2 lakh 20 thousand crore rupees a year.