New Tax Changes To Offset Fuel Duty Cut And Boost Overall Collection: Report
NDTV
Changes in import duty and a windfall tax on fuel exports will offset duty cuts on fuels and increase overall tax collection.
Changes in import duty and a windfall tax on fuel exports will offset duty cuts on fuels and increase overall tax collection over the budget target this fiscal to Rs 20.70 lakh crore, per a report.
The budget has pegged overall tax collection at Rs 19.35 lakh crore. But given, these changes in the customs duties on certain imports and the higher inflation-driven nominal GDP growth will lead to better tax revenue for the government to the tune of an additional Rs 1.35 lakh crore than budgeted for FY23.
After the May 21 tax cuts on fuels, the government has announced a slew of fiscal policy measures to improve its revenue and contain the fiscal deficit.
The government reduced excise duty on petrol and diesel by Rs 8/litre and Rs 6/litre, respectively, on May 21, but on June 30, it increased import duty on gold to 15 per cent from 10.75 per cent; imposed an export duty of Rs 6/litre, Rs 13/litre and Rs 6/litre on petrol, diesel and aviation turbine fuel, respectively.
