Petroleum taxes to take govt’s excise collections to high levels in FY22

Petroleum taxes are set to give big bonanza to the government in FY22 as the recovering economy and improved demand is set to increase its excise collections over the highest ever level reported in pandemic hit FY21.

As per latest government data, central excise duty collection has already touched Rs 1,37,236 crore till August in FY22. This is a growth of almost 37 per cent over Rs 1,00,398 crore excise revenue collected by the Centre in the first five months of FY21.

Tax experts said that if the current movement is maintained, which is likely, given the swift recovery being seen in the economy resulting also in a pick up in demand for petroleum products, Centre’s excise revenue in FY22 would be over Rs 3,89,662 crore excise revenue in FY21.