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<\/p>\nUnion excise duty collection dropped 18 per cent in August year-on-year at a time when the overall central tax kitty rose about 94 per cent before devolution to the states.<\/p>\n
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The mop-up from Union excise duty declined to Rs 23,576 crore in August this year compared to Rs 28,816 crore in the same month a year ago.<\/p>\n
On the other hand, total tax collection rose to Rs 2.9 trillion in the month as against Rs 1.5 trillion in August 2022-23, shows the data released by the Controller General of Accounts (CGA).<\/p>\n
Excise duty receipts not only declined year-on-year but month-on-month too.<\/p>\n
Those were down 3.3 per cent in August as against Rs 24,387 crore in July.<\/p>\n
Collection under this head this financial year was the second-lowest in August, with the lowest so far being in April at Rs 960 crore.<\/p>\n
As such, the moderate rise of 1.9 per cent in excise duty collection in July year-on-year was short-lived.<\/p>\n
The revenues under this head declined in May and June.<\/p>\n
This has resulted in over a 12 per cent fall in excise duty receipts at a shade below Rs 1 trillion in the first five months this financial year as against Rs 1.1 trillion in the corresponding period of the previous financial year.<\/p>\n
If the trend continues, this would make it difficult to achieve the budget projections for excise duty collection.<\/p>\n
The Budget projected a 5.93 per cent increase in this at Rs 3.4 trillion for 2023-24.<\/p>\n
The actual numbers, at Rs 3.19 trillion, were a little less than projected under the RE.<\/p>\n
From the actual numbers, the rise projected was 6.6 per cent for 2023-24.<\/p>\n
In the first five months, excise duty receipts constituted just 29.4 per cent of the Budget projection for 2023-24.<\/p>\n
After the introduction of goods and services tax (GST), Union excise duty is levied mostly on petroleum and tobacco.<\/p>\n
Experts are surprised that excise duty has yielded less in August year-on-year since diesel and petrol, the two main petroleum items, registered an increase in production in the month year-wise.<\/p>\n
While the production of petrol rose 13.7 per cent at 3.7 million tonnes in August, the output of diesel increased 7.2 per cent at 9.4 million tonnes year-on-year.<\/p>\n
Excise duty was last cut in May 2022 and hence it could also not be the reason for the downward trend.<\/p>\n
Without excise duty, the tax kitty more than doubled to Rs 2.7 trillion in August as against Rs 1.22 trillion a year ago.<\/p>\n
This was largely possible owing to a surge in corporation and personal income tax.<\/p>\n
The kitty under corporate tax climbed by about 463 per cent to Rs 62,817 crore in August from Rs 11,159 crore in the same month of the previous year.<\/p>\n
Corporation tax yielded less in the first three months this financial year year-on-year.<\/p>\n
However, its revenues rose in the fourth and fifth months.<\/p>\n
Personal income tax yielded about 333 per cent more at a bit over Rs one trillion in August this year as against Rs 23,813 crore a year ago. <\/p>\n
The total tax kitty excluding Union excise duty rose 20.16 per cent at Rs 10.9 trillion in the first five months this financial year as against Rs 9.1 trillion a year ago.<\/p>\n