While the pandemic stroke tax collection across the board, excise duty mop-up surged 48 pc in the current fiscal on the back of a record increase in taxes on petrol and diesel, that more than made up for the below normal fuel sales. Excise duty collection during April November 2020, was at Rs 1,96,342 Cr, up from Rs 1,32,899 cr mop-up during the same period in 2019, as per data from the Controller General of Accounts (CGA).

This despite the fact that over 10 million tonnes less diesel - the most used fuel in the country - was sold during the eight months period. Diesel sales during April-November 2020, stood at 44.9 million tonnes as compared to 55.4 million tonnes a year back, according to data from the oil ministry's Petroleum Planning and Analysis Cell (PPAC). Petrol consumption too was lower at 17.4 million tonnes, compared to 20.4 million tonnes during April-November 2019. While Goods and Services Tax (GST) apply on most products since its introduction in 2017, oil products and natural gas has been kept out of its preview.

Excise duty, which accrues to the centre, and VAT that goes to the state government, are levied on their sale. Industry sources said the jump in excise duty was primarily because of a record increase in taxes on petrol and diesel during March and May last year. The govt had raised excise duty on petrol by Rs 13 per litre and that on diesel by Rs 16 a litre in two tranches to mop up gains arising from international crude oil prices falling to a two-decade low. With this, the total incidence of excise duty on petrol rose to Rs 32.98 per litre and that on diesel to Rs 31.83 a litre. Petrol costs Rs 84.70 a litre in Delhi and a litre of diesel comes for Rs 74.88. In full 2019-20 fiscal excise collection totalled Rs 2,39,599 Cr, according to CGA.

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