Govt earns 43% more by taxes on petro products in FY11

The government has no proposal at this stage to reduce taxes on petro products even as it earned Rs 1.02 lakh crore by way of taxes on these items in 2010-11. The government realised a total revenue of Rs 1.02 lakh crore by way of customs and central excise in 2010-11, showing a sharp rise of over 43 per cent over the previous year.

The government has already eliminated basic customs duties on crude from 5 per cent. On petrol and diesel, the basic import duty has been reduced from 7.5 per cent to 2.5 per cent and on other petroleum products from 10 per cent to 5 per cent from June 25, 2011. Similarly, the basic excise duty on diesel has been abolished from Rs 2 per litre.crackcrack