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The central government has reduced <keyword id="20442280" type="General" weightage="20" keywordseo="windfall-tax" source="keywords">windfall tax</keyword> on crude petroleum, according to a government notification. The special additional <keyword id="20253895" type="General" weightage="20" keywordseo="excise-duty" source="keywords">excise duty</keyword> (<keyword id="20211971" type="General" weightage="20" keywordseo="saed" source="keywords">SAED</keyword>) on crude petroleum has been slashed from Rs 9,600 per tonne to Rs 8,400 per tonne. The new <keyword id="20452955" type="General" weightage="20" keywordseo="tax-rates" source="keywords">tax rates</keyword> will come into immediate effect. The taxes on <keyword id="6356109" type="General" weightage="20" keywordseo="diesel" source="Orion">diesel</keyword>, petrol and aviation turbine fuel will continue to remain nil. The government had on April 16 raised the windfall tax on <keyword id="20201860" type="General" weightage="100" keywordseo="petroleum-crude" source="keywords">petroleum crude</keyword> to Rs 9,600 per cent tonne from Rs 6,800. A tax levied on an unforeseen or unexpectedly large profit is called a windfall tax. Meanwhile, bringing a measure of respite to the people, <keyword id="19979741" type="General" weightage="20" keywordseo="oil-marketing-companies" source="keywords">oil marketing companies</keyword> have slashed the prices of <keyword id="21488887" type="General" weightage="20" keywordseo="commercial-LPG-gas-cylinders" source="keywords">commercial LPG gas cylinders</keyword> by Rs 19 per unit with immediate effect. The retail sales price of a 19 kg commercial LPG cylinder would be now Rs 1745.50 in Delhi, sources said. Last month, the price was cut by Rs 30.50 for a 19-kg commercial cylinder at Rs 1764.50. While the precise reasons behind the <keyword id="21488889" type="General" weightage="20" keywordseo="price-decrease" source="keywords">price decrease</keyword> remain undisclosed, various factors, such as changes in <keyword id="21488888" type="General" weightage="20" keywordseo="international-oil-prices" source="keywords">international oil prices</keyword>, shifts in taxation policies, and supply-demand dynamics, likely contribute to such adjustments. Revisions for both commercial and domestic LPG (liquefied petroleum gas) cylinders typically occur on the first day of each month. (ANI)

India slashes windfall tax on crude petroleum

<keyword id="19896016" type="General" weightage="20" keywordseo="new-delhi" source="keywords">New Delhi</keyword>, The government has hiked <keyword id="1229080" type="General" weightage="20" keywordseo="windfall-tax" source="Orion">windfall tax</keyword> on domestically produced crude oil to Rs 4,600 per tonne from Rs 3,300 per tonne with effect from Friday. The tax is levied in the form of <keyword id="20211970" type="General" weightage="20" keywordseo="special-additional-excise-duty" source="keywords">Special Additional Excise Duty</keyword> (<keyword id="20211971" type="General" weightage="20" keywordseo="saed" source="keywords">SAED</keyword>). The SAED on export of diesel, however, has been cut to nil from Rs 1.50 a litre, according to an official notification. On petrol and jet fuel or ATF, the levy has been retained at nil. The new rates are effective from March 1. <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies. The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

Govt hikes windfall tax on crude petroleum, cuts levy on diesel

<ul><li>India should not become complacent on the export front. Total export by all nations is about 28-30% of the world GDP. </li><li><keyword id="6393721" type="General" weightage="20" keywordseo="indirect-taxes" source="Orion">Indirect taxes</keyword> such as <keyword id="14212793" type="General" weightage="20" keywordseo="mineral-taxes" source="Orion">mineral taxes</keyword>, <keyword id="6356916" type="General" weightage="20" keywordseo="excise-duty" source="Orion">excise duty</keyword>, export duty etc., must be levied in a rational manner to remove the cascading effect. </li><li>Ban on the export of agro produce shall immediately affect the income of about 45-50% of the population employed in the farming sector. </li></ul>During 2021-22, India exported goods and services worth $669.7 billion (22.8% of GDP) as against $538.6 billion which was at about 20% of GDP during 2017-18. This calls for a sincere applause. However, India should not become complacent on the export front. Total export by all nations is about 28-30% of the world GDP. In 2012-13, India exported goods and services to the tune of 25.4% of GDP. Therefore, India must boost exports up to 28-30% of its GDP. That will recover the loss of GDP during Covid years and ensure consistent growth in the years to come. For this, the cost of basic inputs such as capital, energy, minerals and logistics must be reduced to become globally competitive. More so, indirect taxes such as mineral taxes, excise duty, export duty etc., must be levied in a rational manner to remove the cascading effect. That will boost exports and also arrest ‘cost push’ inflation. Recently, to control inflation, India has banned exports of few agro products and levied 50% export duty on iron ore, 45% on iron ore pellets and 15% on steel. However, current inflation in India is not due to shortage in supply but due to ‘cost push factor’. The export curbs need review since; it will impact GDP growth. Yes, in case of shortage in supply, curbing of exports in a calibrated manner may be chosen as a last option. Ban on the export of agro produce shall immediately affect the income of about 45-50% of the population employed in the farming sector. That will aggravate the unemployment problem. Advance estimate of production and consumption with predictable export policy shall enhance agro production without causing high inflation. India’s steel capacity utilization will be affected by the duty In India, steel production capacity is much higher than the domestic demand. More so, the addition of new capacities is in the pipeline. Sudden levy of 15% export duty shall adversely affect capacity utilization and on-going investment in new capacity. The growth of public income (GDP) and investment rate shall decline; that India can’t afford. It is agreed that; in the past one or two years, steel prices have sky-rocketed and its impact is felt by the entire economy. But such inflated prices are due to high jumps in the price of coal and iron ore; that should be resolved. This will be the right choice over curbing exports by imposing taxes. Thermal coal prices must be brought back to 2019 levels The price of thermal coal must be restored almost to near to 2019-20 level which has now increased by almost three times, mainly due to stagnant production in past years clubbed with the high price of imported coal. Its major impact is on the core sector such as power, steel, metal and cements which travels to the entire economy. For this, India must immediately increase coal production by minimum 20% through regulatory easements. Incremental production may be incentivised through fiscal tools. India has sufficient reserves of non-coking thermal coal but has limited reserves of coking coal. Steel industry uses both types of coal. For reducing import dependency, future capacity in steel may be diverted to the non-coking coal based technology on the best effort basis. The sales of sub-grade iron ore Iron ore is the principal raw material for steel making. For reducing its price, the mineral taxes in the shape of royalty and auction premium should be levied on the basic price (excluding mineral taxes) instead of IBM price (including mineral taxes). More so, IBM price is not consistent with actual sale price in most cases. Hence, mineral taxes should be levied on the actual and basic sale price instead of IBM price similar to GST and excise duty. Prevailing system is causing a compounding effect of the mineral taxes. The price of iron ore has inflated to record high levels. Same is the case with other minerals including coal. The aforementioned method of taxation is a great impediment in selling low/sub-grade iron ore in particular. After paying mineral taxes, the basic sale price comes to below production cost and at times, to a negative sale price. Hence, the miners are reluctant in selling low/sub-grade iron ore. As a consequence, new beneficiation plants are not coming up as per economic needs of the nation. Hence, more than 300 million tons of low/sub-grade iron ore is accumulated in the mines causing wastage of precious mineral resources. By and large, India must choose appropriate policy tools for controlling inflation without sacrificing exports and GDP. For intermediate products like iron ore, a calibrated curb in export may be chosen keeping a balance between the exports, GDP and inflation. The writer is an economist and the author of the book’ ‘Turn Around India: 2020- Surmounting Past Legacy’ SEE ALSO: <a href="https://www.businessinsider.in/thelife/news/hul-ceo-sanjiv-mehta-coins-a-new-word-humbition-combining-humility-with-ambition/articleshow/92253088.cms">HUL CEO Sanjiv Mehta coins a new word - humbition, combining humility with ambition</a> <a href="https://www.businessinsider.in/business/corporates/news/theres-a-silver-lining-for-hotstar-in-losing-ipl-digital-rights-here-is-how-it-can-strengthen-its-counter-strategy/articleshow/92252808.cms">There’s a silver lining for Hotstar in losing IPL digital rights – here is how it can strengthen its counter-strategy</a>

India’s exports have a long way to go and the curbs are not helping

The Delhi government has exempted road tax on its battery-operated vehicles under its new <keyword id="6248507" type="COMPANY" weightage="20" keywordseo="electric-vehicle-policy">Electric Vehicle Policy</keyword>, Delhi Transport minister <keyword id="2893545" type="PERSON" weightage="20" keywordseo="Kailash-Gahlot">Kailash Gahlot</keyword> said on Sunday. The Transport department, in it notification issued on Saturday, stated that the Lieutenant Governor of the National Capital Territory of Delhi exempted the tax levied upon all battery electric vehicles with immediate effect. "In exercise of the powers conferred by sub-section (3) of section 13 of the Delhi Motor Vehicles Taxation Act, 1962 (number 57A of 1962), the Lieutenant Governor of the National Capital Territory of Delhi, hereby exempts the tax levied upon all Battery Electric Vehicles described in column I, II, III and IV of Part A of Schedule-I and Part B of Schedule-I of this Act w.e.f., date of issue of this notification," read the gazette notification. Gahlot said in a tweet "Congrats Delhi! As promised by CM @ArvindKejriwal when announcing landmark EV Policy, Delhi govt has EXEMPTED road tax on Battery Operated Vehicles. With rigc vehicle ht incentives &amp; supporting infra, we are determined to ensure Delhi leads the country in rapid transition to Elec Vehicles (sic)." SEE ALSO: <a href="https://www.businessinsider.in/thelife/news/this-boeing-727-lets-passengers-experience-zero-gravity-by-flying-crazy-maneuvers-and-itaposs-now-on-tour-across-the-us/slidelist/78604525.cms" data-type="tilCustomLink">This Boeing 727 lets passengers experience zero gravity by flying crazy maneuvers, and it's now on tour across the US</a>

Delhi government exempts road tax on battery-operated vehicles under its EV policy

<keyword id="6356916" type="UNKNOWN" weightage="20" keywordseo="excise-duty">Excise duty</keyword> can be explained as a kind of <keyword id="6354678" type="DEFINITION" weightage="20" keywordseo="Indirect-Tax">indirect tax</keyword>. Excise duty refers to the tax amount that gets included in the selling price. The other name of excise duty is excise tax. The consumer has to pay the excise duty or excise tax while making a purchase. Retailers need to calculate the excise duty from time to time and must ensure the timely payment of the same. Excise duty in the Indian context Excise duty is levied on the goods that are manufactured within India as against the custom duty which is levied on the goods that are imported from outside the country. The introduction of GST in India has made some significant changes to how excise duty works in the country. GST has subsumed a majority of indirect taxes like excise duty. This will mean that after the GST was introduced, excise duty has almost ceased to exist in the country. However, excise duty is still applicable in case of products like petroleum and liquor. Here we discuss how the concept of excise duty worked in India before the introduction of GST. The indirect tax of excise duty is generally collected by the retail seller from the customers and paid to the government. This duty is payable on the manufacture of goods. It is payable at the time of taking delivery of the goods from the place of production or from the warehouse for the purpose of selling. Since the excise duty is levied on the manufacturing of the said goods, there is no need to actually sell them to be able to recover the excise duty. The authority for the collection of excise duty in India is the Central Board of Excise and Customs (CBEC). Types of excise duty in India Traditionally speaking in India before the advent of GST, there had been three kinds of excise duty as given under. A revised understanding of the excise duty is called for after the GST took effect. Basic Excise Duty Basic excise duty is also referred to as Central Value Added Tax (CENVAT). This category of excise duty is levied on goods that are classified under the first schedule of the Central Excise Tariff Act, 1985. This duty is levied under Section 3 (1) (a) of the Central Excise Act, 1944. This excise duty is applicable for all goods excepting salt. Additional Excise Duty Section 3 of the Additional Duties of Excise also known as the goods of high importance, coming under Act 1957 levies excise duty on goods that are listed under schedule 1 of the given act. This duty is levied on some special category of goods. The central and state government charge these taxes in lieu of the sales tax. Enacted in 1978, the Act of Additional Duties of Excise (Textiles and Textile Articles) also creates room for a similar kind of legislation. Special Excise Duty This type of excise duty is levied on special goods that are classified under the Second schedule to the Central Excise Tariff Act, 1985.

What is Excise Duty and How it is calculated

New Delhi, Jan 19 () With no sight of including jet fuel in Goods and Services Tax (GST) in near future, the government is considering levying specific rate of excise duty on aviation turbine fuel (ATF) in place of current ad valorem rates to insulate its prices from cascading effect in times of volatile prices.
ATF presently is chargeable at 11 per cent ad valorem rate of excise duty. Concessional rate of 2 per cent is applicable for ATF sold under Regional Connectivity Scheme. Ad valorem rate means that the impact of an increase in price of the fuel because of global rate hike translates into an even higher price for airlines as the tax incidence also rises.
To insulate airlines from such volatility, the government may in the forthcoming Budget for 2020-21 fiscal year may bring specific excise duty expressed in Rs per kilolitre, sources aware of the development said.
Petrol and diesel already attract a specific rate of excise duty and so ATF naturally qualifies for such a shift, they said.
Finance Minister Nirmala Sitharaman will present her second budget on February 1.
Explaining the duty structure, sources said if cost of production of ATF is Rs 100 per kilolitre, the fuel at exit from the refinery will be priced at Rs 111 per kilolitre after levying 11 per cent excise duty. If the cost rises to Rs 110, the ex-refinery rate would attract an excise duty of Rs 12. A specific duty of say Rs 11 per kilolitre would mean that even if the cost goes up the tax incidence would remain the same.
Petrol and diesel already attract specific excise duty for the same purpose. Excise duty on petrol currently is Rs 21.16 per litre and that on diesel is Rs 15.83 a litre.
This, they said, would ensure correct payment of duty at the initial clearance stage itself and will eliminate complexities and difficulties in redetermination of duty on further stock transfers which sometime result in avoidable litigation.
Specific excise duty would address part of the concerns of oil companies and airlines of not being able to set of tax paid on inputs against the tax on final product as ATF has been kept out of GST regime.
When the Goods and Services Tax (GST) was introduced on July 1, 2017 amalgamating 17 central and state levies, five commodities namely crude oil, natural gas, petrol, diesel, and ATF were kept out of its purview given the revenue dependence of state governments on this sector.
Under the existing structure, both natural gas and ATF attract the Centre's excise duty and a state's value-added tax (VAT). Both these and all other levies will get subsumed under GST if they are brought under its ambit.
The decision on their inclusion depends on the financial position of states as revenues from these five petroleum products constitute a substantial chunk of state government finances.
The aviation ministry has time and again sought inclusion of ATF under GST as any surge in international oil rates gets reflected in domestic jet fuel prices, leading to costlier air tickets. Oil Ministry too has favoured including ATF along with natural gas under the GST regime to help companies set off tax that they paid on input.
ATF makes up for almost half of the cost of an airline and rates vary from state to state depending on local VAT. ANZ MKJ

Govt considering specific excise duty on ATF

Mumbai, May 8 () The record excise duty hike on petrol and diesel will not help the government bridge the fiscal gap as planned, nor will it help boost economic growth as consumption demand will further be crippled, warns a report. Despite crude prices trading at a two decades low, the government had earlier this week hiked excise duty on petrol by Rs 10 a litre and on diesel by Rs 13 a litre to mop up nearly Rs 1.6 lakh crore in additional revenue this fiscal. With this the new effective excise duty on petrol is Rs 32.98/litre and diesel is Rs 31.83/litre. Following the record hike in excise duty on petrol and diesel, the total incidence of taxation on auto fuels jumped to 70 per cent of the retail price. But the retail prices are not impacted as the hike completely wipes out the fall in crude prices. "We continue to expect fiscal slippage of 2 per cent of GDP in overall fiscal deficit despite the oil tax hike of 0.7 per cent of GDP or around Rs 1.6 lakh crore," Wall Street brokerage Bank of America Securities India said in a note on Friday. Its 200 bps fiscal slippage is based on the assumption of another 30 bps fiscal stimulus to small and medium-sized enterprises (SMEs), state-run banks and realtors. "We expect the government to announce another fiscal stimulus of 0.3 per cent of GDP for SMEs, real estate and banks to support growth. This will likely push up fiscal deficit to 4.8 per cent of GDP, overshooting the FY21 budget target, by 130 bps. "Accordingly, the states' fiscal deficit will also rise 50-100 bps above our expected 3.1 per cent of GDP," says the report. The report also doubted the sustainability of the oil tax driven fiscal management as it remains to be seen if the tax hike is sustainable as the Brent crude is projected to climb to USD 39 a barrel by the December quarter. The revenue gain of close to Rs 1.6 lakh crore will make sense only if the current prices sustain, and demand de-growth reverses, it said. The budget had revised upwards the fiscal deficit target to 3.5 per cent for the current fiscal, against the previously set glide path of 3.2 per cent. And this report pegs a 200 bps slippage to this target for the year. Calling for more fiscal stimulus measures to tide over the COVID-19 pandemic, it forecasts an "additional 30 bps of GDP fiscal stimulus, atop the 35 bps already done, focusing on SMEs, real estate and state-run bank recapitalization, shortly." On growth, the report said best case scenario offers 1.5 per cent growth in FY21, lower than the 2 per cent growth many others have pencilled in. Even this 1.5 per cent growth is dependent on more fiscal and monetary stimulus and the Bank of America economists expect the Reserve Bank to slash the reverse repo by another 50 bps to 3.25 per cent by October. "As it is, we see a 100 bps downside risk to our 1.5 per cent FY21 growth forecast if the lockdown extends to June, with the restart taking up July. So to tide over the shock, we expect the government to announce an additional fiscal stimulus of 0.3 per cent of GDP on top of the 35 bps already done," the report said. BEN DRRDRR

You Searched For "excise duty" and got 7 results

India slashes windfall tax on crude petroleum

ANI

Govt hikes windfall tax on crude petroleum, cuts levy on diesel

PTI

India’s exports have a long way to go and the curbs are not helping

R P Gupta

Delhi government exempts road tax on battery-operated vehicles under its EV policy

BI India Bureau

What is Excise Duty and How it is calculated

BI India Bureau

Govt considering specific excise duty on ATF

PTI

Record excise duty hike unlikely to help bridge fiscal gap: Report

PTI

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