Question : CESS ON PETROLEUM PRODUCTS



(a) whether the Government is collecting cess on petroleum products;

(b) if so, the details thereof and the reasons therefor; and

(c) the details of cess collected by the Government, Statc/UT-wise during the last three years and the current year?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (INDEPENDENT CHARGE) (SHRI DHARMENDRA P RAP HAN)

(a) and (b): An Additional Duty of Customs and an Additional Duty of Excise are levied and collected as cess on Motor Spirit commonly known as Petrol under Section 103 and Section 111 of the Finance (No.2) Act, 1998, respectively. Also an Additional Duty of Customs and an Additional Duty of Excise is levied and collected as cess, on High Speed Diesel Oil under Section 116 and 133 of Finance Act, 1999, respectively.

The revenue collected is initially credited to the Consolidated Fund of India and thereafter, Parliament by appropriation credits such proceeds after adjusting cost of collection, to the Central Road fund (CRF). The CRF is thereafter distributed by Planning Commission amongst three Ministries i.c. Ministry of Rural Development,Ministry of Railways and Ministry of Road Transport and Highways in the manner prescribed under Section 10 (viii) of the Central Road Fund Act, 2000.

Section 7 of the Central Road Fund Act, 2000 lays down that CRF shall be utilised for the -

(i) development and maintenance of national highways;

(ii) development of the rural roads;

(iii) development and maintenance of other State roads including roads of interĀ¬state and economic importance;

(iv) construction of roads either under or over the railways by means of a bridge and erection of safety works at unmanned rail-road crossings; and

(v) disbursement in respect of such projects as may be prescribed.

(c) :flic details of cess collected during the last three years as per the Receipt budget is as under:

	Figures in Rs.crore Type of Duty	2011-12	2012-13	2013-14	2014-15	(Actual)	(Actual)	(Actual)	(Budgeted) Additional Duty of Customs	119.02	25.93	26.00 on Motor Spirit Additional Duty of Customs	191.28	45.78	6.00 on High Speed Diesel Oil Additional Duty of Excise	3853.49	3819.11	4300.00	4700.00 on Motor Spirit Additional Duty of Excise	14574.51	15513.56	15300.00	16700.00 on High Speed Diesel Oil 

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