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Another excise hike for petroleum products on cards to offset revenue loss

Another excise hike for petroleum products on cards to offset revenue loss

Yearning for revenue at a time of deep resource crunch, the Centre is considering another excise duty hike on petrol and diesel. The hike could be notified after the resumption of economic activity once the nationwide lockdown is broadly lifted.
“There may be marginal hike in excise duty to offset revenue loss due to lack of demand. Discussions are being held internally,” said a senior government official.
A second government official said out that with hardly any economic activity, an immediate duty hike will not be productive and could be announced once the lockdown eases and demand revives. “It may be notified once the economic activity restarts more substantially," the person said.

Amid falling international crude oil prices, the government in March introduced an enabling provision to hike excise duty on petrol and diesel by Rs 8 per litre in future in the finance Act.

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