In a bid to bolster its tax revenues and discourage the consumption of the fuel, the finance ministry in India is now looking forward to raise the excise duty on the vehicles that are using subsidized fuel. It has been more than 6 months since the speculations of duty hike on vehicles run on diesel has been doing rounds in the Indian market. Now, as the government has raised the petrol prices massively, the consumption of diesel is expected to surge considerably. Thus, the government is looking forward to discourage this raised consumption of diesel.
Speaking to the reporters in the National Capital, Mr. S K Goel, Chairman of Central Board of Excise and Customs (CBES), said, "The proposal is there and that is being examined by finance minister (Pranab Mukherjee). Consultations are being held and an appropriate decision will be taken by the government in due course."
It has long been argued by the petroleum ministry that the subsidized fuel should be only for common and poor people, and the rich should not get this subsidy on diesel. As per an estimate, personal cars and SUVs account for about 15 percent of the total diesel consumption in the country.
