Why No Mention Of Fuel Tax Cut In Budget? Revenue Secretary Explains

New Delhi: 

Finance Minister Nirmala Sitharaman did not announce a cut in excise duty on petrol and diesel while presenting the interim Budget in Parliament yesterday. Explaining the Government’s move, Revenue Secretary Sanjay Malhotra told NDTV that excise duties on petrol and diesel were cut when oil prices were high and any further reduction in fuel taxes seems unlikely now that global prices have stabilised.

“Our excise duty collections have decreased. We had reduced the excise duty on petroleum products at a time when the prices of crude and petroleum products had reached $ 100 to $110,” said Mr Malhotra.

“Since then the prices have reduced in the international market. In view of this, there is no proposal to make any further changes in excise duty,” he said.

The move might also help the Government to meet the fiscal deficit target.

The government is targeting to reduce its fiscal deficit to 5.1 per cent of GDP in 2024-25 from 5.8 per cent in the current financial year.

The revenue secretary also elaborated on relief for small taxpayers in the interim Budget.

The Centre will not pursue taxpayers to recover old and disputed direct taxes up to ₹ 25,000 till the financial year 2009-10, Nirmala Sitharaman said in her sixth Budget speech.

“Direct taxes demand up to ₹ 10,000 from the financial years 2010-11 to 2014-15 will also be withdrawn. This will benefit about one crore taxpayers,” she said.

“We will withdraw disputed tax demands of 1 crore 11 lakh small taxpayers by March 31, 2024,” said Mr Malhotra.