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 Rs 25,000 till the financial year 2009-10, Nirmala Sitharaman said in her sixth Budget speech.
"Direct taxes demand up to Rs 10,000 from the financial years 2010-11 to 2014-15 will also be withdrawn.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.
He said the taxpayers would not have to make any application for this and that the "tax department will itself withdraw these disputed tax demands".
He also pointed to an increase in GST collection after imposing a 28 per cent GST on online gaming.
"A 475% increase in GST Collection has been registered from imposing 28% GST on online gaming," he said.
Online gaming companies are being charged 28 per cent GST on full value of bets, while offshore platforms too would be required to have GST registration to operate in India from October 1.
"In the last three months, a total collection of Rs 3,570 crore has been made due to the imposition of GST on online gaming. Whereas in the three months before the implementation, GST collection of Rs nearly 605 crore was done," he said.
"We estimate that by imposing 28% GST on online gaming, we will collect revenue of Rs 10,000 to 12,000 crore this year. In the next two to three years, GST collection per month can increase to Rs 2 lakh crore," he added.
The GST Council in its meetings in July and August had decided to clarify the levy of 28 per cent GST on full face value of bets placed on online gaming platforms and horse racing and casinos.
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