Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi on Thursday said the government’s recent changes on the excise duty on petrol and diesel will likely result in a revenue implication of Rs 7000 crore on a fortnightly basis. Chaturvedi assured that revenue outcomes will be reviewed on a fortnightly basis, given the ongoing volatility in global trade conditions.
Chaturvedi said, "Revenue implications will be seen by the department. As I said earlier on the side of exports, there was a revenue implication. We will be looking at the trends of imports for the fortnightly period and then coming up with what has been the revenue implication because please understand that the situation is dynamic."
On Friday, the government slashed excise duties for petrol and diesel by Rs 10 per litre each, bringing them down to Rs 3 per litre of petrol and zero for a litre of diesel. According to the CBIC Chairman, this is a “calibrated” response to global supply uncertainties, with a back-of-the-envelope estimate indicating an additional ₹1,500 crore in revenue over a fortnight from new levies on fuel exports.
To ensure there is no disruption in the domestic supply of the fuels, the government has imposed Special Additional Excise Duty (SAED) and Road and Infrastructure Cess on the export of diesel and aviation turbine fuel (ATF) sourced from overseas.
The CBIC emphasised that the move is aimed at prioritising domestic availability of these critical fuels and ensuring energy security amid volatile international markets marked by supply disruptions and price swings.
“Revenue gain using a back of the envelope calculation for these proposals would be roughly around Rs 1500 crore rupees in a fortnight. However, the rest of it will be monitored on a fortnightly basis,” said Chaturvedi.