Lok Sabha Question No. 1660 (UNSTARRED), answered on 2023-02-13
Subject: Taxes, Cesses and Surcharges Levied on Petrol and Diesel
Ministry: FINANCE
Asked by: Y. S. Avinash Reddy, Chinta Anuradha, Beesetti  Venkata Satyavathi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UNSTARRED QUESTION NO.1660

## TO BE ANSWERED ON MONDAY, FEBRUARY 13, 2023/MAGHA 24, 1944 (SAKA)

## TAXES, CESSES AND SURCHARGES LEVIED ON PETROL AND DIESEL

1660.   SHRI Y.S. AVINASH REDDY: SHRIMATI CHINTA ANURADHA: DR. BEESETTI VENKATA SATYAVATHI:

## Will the Minister of FINANCE be pleased to state:

- (a)  the  details  and  the  amount  of central  excise  duty  and  State taxes,  cesses and  surcharges levied and collected on per litre of petrol and diesel during each of the last five years, State/UT-wise;
- (b) whether the central tax on petrol and diesel has increased in form of cess in the last few years and if so, the details thereof and the reasons therefor;
- (c)  whether  such cess  collected  by  the  Government  is  not  shared  with the  States  and  if  so,  the  details thereof and the reasons therefor;
- (d) whether the Government proposes to share such cess with the States and if so, the details thereof and if not, the reasons therefor;
- (e) the quantity of petroleum products imported by the country during each of the last eight years; and
- (f)  whether  the  Government  has  any  plans  to  bring  petroleum  products  under  the  GST  and  if  so,  the details thereof and if not, the reasons therefor?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

- (a):    State/UT  wise  information  with  respect  to  state  taxes  is  not  centrally  maintained.  However,  the details  of  total  central  excise  duty,  cesses  and  surcharges  levied  and  collected  per  litre  on  petrol  and diesel, in the last five years, is as under:

## (inRs.)

| Time period                 |   Petrol |   Diesel |
|-----------------------------|----------|----------|
| 5 th Oct,18 to 6 th Jul,19  |    17.98 |    13.83 |
| 6 th Jul,19 to 14 th Mar,20 |    19.98 |    15.83 |
| 14 th Mar,20 to 6 th May,20 |    22.98 |    18.83 |
| 6 th May,20 to 2 nd Feb,21  |    32.98 |    31.83 |
| 2 nd Feb,21 to 4 th Nov,21  |    32.9  |    31.8  |
| 4 th Nov,21 to 22 nd May,22 |    27.9  |    21.8  |
| 22 nd May, 22 till date     |    19.9  |    15.8  |

- (b) In the last 2 years, the Road and Infrastructure Cess (RIC) on petrol and diesel have been reduced by Rs. 13 per litre on petrol and Rs 15 per litre on Diesel. No change has been made in other cesses.
- (c) and (d) As per Article 271 of the Indian Constitution, all taxes and duties, except cesses levied for specified  purposes,  shall  be  distributed  between  the  Union  and  the  States.  Devolution  to  State Governments is made out of the Basic Excise Duty component on the basis of the formula prescribed by the Finance Commission from time to time. The various Cesses collected by the Central Government is inter  alia used for funding various Centrally Sponsored schemes, whereby funds are transferred to the States for implementing these schemes for the development of States.
- (e) Import data for petroleum products is given as under:

(in '000 Metric Tonnes)

| Year              |   Crude Oil |   Motor Spirit |   High Speed Diesel |   Aviation Turbine Fuel |
|-------------------|-------------|----------------|---------------------|-------------------------|
| 2015-16           |      202850 |           1012 |                 177 |                     286 |
| 2016-17           |      213932 |            476 |                1008 |                     338 |
| 2017-18           |      220433 |            174 |                1361 |                     300 |
| 2018-19           |      226498 |            670 |                 555 |                     259 |
| 2019-2020         |      226955 |           2146 |                2796 |                      65 |
| 2020-21           |      196461 |           1351 |                 648 |                       0 |
| 2021-22           |      212382 |            671 |                  75 |                       0 |
| 2022-23 (Arp-Dec) |      172390 |           1069 |                 313 |                       0 |

Source: PPAC, MoPNG

- (f):  Article  279  A  (5)  of  the  Constitution  prescribes  that  the  Goods  and  Service  Tax  Council  shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel (ATF). Also, as per the section 9(2) of the CGST Act, inclusion of these  products in GST will require recommendation of the GST  Council.  So  far,  the  GST  Council,  in  which  the  States  are  also  represented,  has  not  made  any recommendation for inclusion of these goods under GST.

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