Entire cost of reduction in excise duty on petrol, diesel is borne by Centre: FM

Union Finance Minister Nirmala Sitharaman on May 22 clarified that the entire cost of the reduction in excise duty on petrol and diesel is borne by the Central government and the states revenue wont be impacted by the moveTaking to Twitter Sitharaman shared facts about the Centres decision to bring an Excise Duty cut on petrol and diesel saying that both criticism and appraisal can benefit from themThe Finance Minister informed that the Basic Excise Duty BED Special Additional Excise duty SAED Road and Infrastructure Cess RIC and Agriculture and Infrastructure Development Cess AIDC together constitute Excise Duty on petrol and diesel Basic Excise Duty is sharable with states SAED RIC and AIDC are nonshareable she said2Basic Excise Duty BED Special Additional Excise duty SAEDRoad amp Infrastructure Cess RIC and Agriculture amp Infrastructure Development Cess AIDC together constitute Excise Duty on petrol and dieselBasic ED is sharable with statesSAEDRIC amp AIDC are nonsharablemdash Nirmala Sitharaman nsitharaman May 22 2022Sitharaman clarified that the Excise Duty reduction of Rs 8 per litre on petrol and Rs 6 per litre on diesel effective from today has entirely been made in Road and Infrastructure Cess RIC She also informed that the reduction of Rs 5 per litre in petrol and Rs 10 per litre in diesel in November 2021 was also entirely made in RIC3 The excise duty reduction of 8litre on petrol and 6litre on diesel effective from today has entirely been made in Road amp Infrastructure Cess RICEven in November lsquo21 the reduction of 5litre in petrol and 10litre in diesel was entirely made in RICmdash Nirmala Sitharaman nsitharaman May 22 2022Basic ED which is sharable with states has not been touched Therefore the entire burden of these two duty cuts made in November 2021 and yesterday is borne by the Centre the Finance Minister said The duty reduction made yesterday as per Sitharaman has an implication of Rs 100000 crore a year for Centre5 The duty reduction made yesterday has an implication of 100000 cr a year for Centre The duty reduction made in Novemberrsquo21 has an implication of Rs 120000 cr a year for Centre Total revenue implication to Centre on these two duty cuts is thus 220000 cr a yearmdash Nirmala Sitharaman nsitharaman May 22 2022Meanwhile the duty reduction made in November 2021 has an implication of Rs 120000 crore a year for the Centre The total revenue implication to the Centre on these two duty cuts is thus Rs 220000 crore a yearFurther the Finance Minister shared that the Reserve Bank of Indias data reveals that the total developmental expenditure incurred by Prime Minister Narendra Modiled Government during 201422 was Rs 909 lakh crore Slamming the United Progressive Alliance she said that in contrast to the PM Modiled government only Rs 492 lakh crore was spent on developmental expenditure during 2004147The expenditure incurred by our Govt under PMOIndia narendramodi includes 2485 lakh crore spent so far on food fuel and fertiliser subsidies and 263 lakh crore on capital creationOver the 10 years of UPA only 139 lakh crore was spent on subsidiesmdash Nirmala Sitharaman nsitharaman May 22 2022The expenditure incurred by our government under Prime Minister Narendra Modi includes Rs 2485 lakh crore spent so far on food fuel and fertiliser subsidies and Rs 263 lakh crore on capital creation Over the 10 years of United Progressive Alliance only Rs 139 lakh crore was spent on subsidies Sitharaman addedNotably after taking a critical view of the central governments request to the states to cut taxes on petrol and diesel former Union Finance Minister P Chidambaram on Sunday said the facts about the states share of tax reduction are contrary to what he had said previously as the entire burden of the duty cut would fall on the centreThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever