With steep hike in excise duty on fuel, govt to rake in Rs 1-1.6 trn

The record hike in excise duty on petrol and diesel is likely to shore up the Union government’s revenue by anywhere between Rs 1 trillion and Rs 1.6 trillion, depending on the severity of consumption decline because of weak economic activity amid the Covid-19 pandemic.
 

The fuel consumption is estimated to decline 10-20 per cent during fiscal year 2020-21 (FY21).
 

State Bank of India Chief Economic Adviser Soumya Kanti Ghosh pegs the Centre’s gains at Rs 1 trillion, assuming the fuel consumption declines by 20 per cent. The steep duty hike, he said, would make up for the losses incurred