FM mulls excise duty hikes to bridge tax revenue shortfall

The government is worried about the expected shortfall in tax revenues and is considering a hike in excise duty on goods like diesel cars and tobaco products, reports Aakanksha Sethi of CNBC-TV18.

The government has not yet arrived at this decision. The decision would be taken in consultation with the Prime Minister at the end of the Parliament session because price rise is a politically sensitive issue.

The excise duty rates on cigarettes vary depending on the length of the cigarette hence a 20-30% hike is being considered. Similarly, for diesel run cars a hike of Rs 20000, Rs 50,000 and Rs 70,000 will be considered depending on the size of the car, varying from a small car to a big car.

The indirect tax department