Question : TAX FOR CONSTRUCTION OF ROADS



(a) Whether tax is being collected from the consumers in the form of cess on various products for construction of National Highways in the country;

(b) if so, the details thereof alongwith the names of products on which cess is being levied during each of the last three years and the current year;

(c) the total amount collected as tax realisation during the above period and the amount of tax estimated to be collected in the current Plan Period, year-wise and product-wise;

(d) the projects identified in this regard, State-wise and project-wise: and

(e) the steps taken/proposed to be taken by the Government in this regard?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI R.P.N. SINGH)

(a) to (c): At present Rs.2.00 per litre is collected as additional duty of excise and custom on both petrol and high speed diesel which is initially credited to the Consolidated Fund of India and thereafter, Parliament by appropriation transfer the amount, after adjusting cost of collection, to the Central Road Fund (CRF). The cess so collected under CRF is thereafter distributed by Planning Commission among three Ministries i.e. 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. Cess collected on petrol and high speed diesel for the current financial year will be available after closing of the financial year. Details of cess collected for the last three years are given here under:-

Year	Amount collected	(Rs. in crore)
2006-07 12206.54 2007-08 13264.41 2008-09 15198.23

(d) & (e): Ministry of Road Transport & Highways give administrative approval to CRF works received from States/UTs. The State-wise details of estimates/proposals received and administratively approved under CRF during the year 2006-07, 2007-08, 2008-09 and 2009-10 (upto 31/10/09) are given in Annexure. This Ministry’s guidelines to the States specify that such CRF works are to be completed within a period of 2 years. States Governments are regularly requested to increase the pace of the progress of CRF works and the progress of utilization of funds from CRF is monitored quarterly.