Excise Duty Cuts

Budget duty cut on key inputs to boost exports, manufacturing: Commerce Min

The reduction in customs duties in the Budget on certain inputs from sectors like marine, chemicals and critical minerals will help promote domestic manufacturing and enhance exports, according to the Commerce Ministry. It has also said that the announcement to revamp the Model Bilateral Investment Treaty (BIT) will provide better leverage during FTA (free trade agreement) negotiations. The duty on frozen fish paste (Surimi) and fish hydrolysate for aquatic feed has been reduced to 5 per cent on both these products from the current 30 per cent and 15 per cent, respectively. In the chemicals sector, the levy on pyrimidine and piperazine compounds was cut down to 7.5 per cent from the present 10 per cent; and reduced to 20 per cent on synthetic flavouring essences from 100 per cent. These compounds are used in various medicines. These essences are used to give a certain specific taste or aroma to food and beverages. On sorbitol, a low-calorie sweetener, the duty has been reduced to

Duty cut on smartphone parts to hit electronics ecosystem, jobs: GTRI

Any reduction in the customs duty on smartphone parts in the forthcoming budget will harm India's developing component ecosystem, discourage investment, increase imports, and make local firms uncompetitive, potentially resulting in job losses, think tank GTRI said on Tuesday. India's smartphone industry is a 'Make in India' success story, with 2023-24 production reaching USD 49.2 billion and exports at USD 15.6 billion, making smartphones the fourth-largest export after diesel, aviation fuel, and polished diamonds. However, a few industry groups are pushing for further import tariff cuts on smartphone components in the Union Budget for FY26. The Global Trade Research Initiative (GTRI) warns that this could harm India's growing local manufacturing ecosystem and long-term ambitions in electronics. "Instead of cutting tariffs, GTRI recommends setting up component hubs near ports to reduce import delays and warehousing costs. This approach, used by countries like Vietnam and China, wou

CNG price may go up Rs 4-6 on supply cut, excise duty reduction to ease

The government has slashed by up to 20 per cent the supplies of cheaper domestically produced natural gas to city retailers -- a move that may result in Rs 4-6 per kg hike in the price of CNG sold to automobiles, unless excise duty on the fuel is cut, sources said. Natural gas pumped from below the ground and from under the seabed from sites ranging from the Arabian Sea to Bay of Bengal within India is the raw material that is turned into CNG for sale to automobiles and piped cooking gas to households. Production from legacy fields, whose price is regulated by the government and which are used to feed city gas retailers, has been falling by up to 5 per cent annually due to natural decline that has set in. This has led to supply cuts to city gas retailers, four sources in know of the matter said. While the input gas for piped cooking gas that households get is protected, the government has cut supply of raw material for CNG. Gas from legacy fields used to meet 90 per cent of the dema

Windfall tax on crude oil slashed to Rs 3,500/tonne, duty on diesel hiked

Petrol and Aviation Turbine Fuel (ATF) have been exempted from the export levy

Centre slashes windfall tax on crude oil from Rs 5,050/tonne to Rs 4,350

Windfall tax: The additional excise duty on ATF has been cut to Rs 1.5 per litre from Rs 6 per litre earlier

Tax changes to offset duty cut on fuel; boost tax mop-up: Report

Changes in import duty and a windfall tax on fuel exports will not only offset duty cuts on fuels but will also increase overall tax collection over budget target to Rs 20.70 trillion, a report said

India's export curbs, tax hike to exacerbate global diesel, petrol shortage

India's latest measures aimed at boosting domestic oil supplies could reduce its diesel and gasoline exports in the second half of the year

India expands biofuel tax benefits for ethanol and vegetable oils

India has expanded the excise duty exemption for biofuels to encourage the blending of higher proportions of ethanol and components of vegetable oil with gasoline and diesel, a government order said.

Freight rates in May fall but transporters defer fleet expansion plans

Customers pay less after six months for but transport companies feel the pinch of inflation.

Duty cut on petrol, diesel to put pressure on fiscal deficit: Experts

The tax reduction on petrol and diesel will lead to revenue loss of around Rs 1 lakh crore per year for the government

HPCL, BPCL, IOC: Will OMC stocks remain under pressure on excise duty cut?

According to the current chart structures, shares of OMCs needs to hold their relevant support levels to stay afloat.

'This fuel price cut not enough': TMC says BJP trying to fool masses

TMC on Saturday said the Centre's decision to slash fuel prices is an attempt to "fool the people" as it had increased the prices by leaps and bounds in the last few months

Reduction of excise duty on petrol, diesel not enough, says Thackeray

Maharashtra CM Uddhav Thackeray said the Central government's reduction of excise duty on petrol and diesel was not enough and demanded that it be brought down further

'Rollback excise duty on fuel to UPA level,' says Congress on price cut

The Congress on Saturday accused Finance Minister Nirmala Sitharaman of "befooling'' people after she announced an excise duty cut on petrol and diesel and said people needed relief

UP CM Adityanath thanks PM Modi after excise duty cut on petrol, diesel

Uttar Pradesh Chief Minister Yogi Adityanath on Saturday thanked Prime Minister Narendra Modi for the cut in excise duty on petrol and diesel.

There is room for govt to cut excise duty on fuel without hurting revenues

The government has room to cut excise duty on petrol and diesel by up to Rs 8.5 per litre without impacting its target for revenue from the tax on the two fuels, analysts said. Petrol and diesel prices hover at a historic high following a relentless increase in rates over the past nine months. There have been calls by opposition parties as well as sections of society to the government to reduce excise duty to ease consumer pain. "We estimate excise duty on auto fuels in FY22 (April 2021 to March 2022), if it is not cut, at Rs 4.35 lakh crore versus budget estimate of Rs 3.2 lakh crore. "Thus, even if excise duty is cut by Rs 8.5 per litre on or before April 1, 2021, FY22E budget estimate can be met," ICICI Securities said in a note. It expressed optimism for an excise duty cut given demand recovery, impending privatisation and inflation concerns but expected it to be more modest than Rs 8.5 a litre. Excise duty was raised by Rs 13 and Rs 16 per litre on petrol and diesel between M

Fiscal concerns check slashing of excise duty on petrol, diesel

The finance ministry has ruled out excise duty cuts in petrol and diesel, given the Centre's need for money. "We are not even thinking about it. The finances do not allow us to cut the rates," a senior ministry official said. Over half of total excise duty collection comes from petrol and diesel. The Centre's fiscal deficit touched 92 per cent of the full-year Budget estimate after the first four months of the financial year, compared to 74 per cent in the same period last year. This was mainly due to front-loading of expenditure. State Bank of India group chief economist Soumya Kanti Ghosh said a one per cent cut in excise duties on petrol and diesel would affect the Centre's revenue by Rs 13,000-15,000 crore. This means up to 2.7 per cent of the budgeted fiscal deficit, at Rs 5.46 lakh crore. At a time when the target of reining in the deficit at the aimed 3.2 per cent of gross domestic product (GDP) is already a challenge. Expenditure could be cut to meet this target but that ...