When is India going to have its first ‘no’ signs on petrol and diesel?

India’s gas and diesel excise duty on petrol will be scrapped from April 1, 2019, after which a new set of no-pipelines regulations will come into effect, making India one of the first countries to abolish petrol and gas taxes. 

This move was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by the prime minister, Manmohan Singh, on Wednesday. 

“The Prime Minister is satisfied that the final set of regulations will be in place by April 1st, 2019.

The government is of the view that these rules will ensure that the gas tax and diesel tax are no longer levied on petrol or diesel,” a senior government official said.

“There will be no gas tax on diesel or petrol,” the official added.

The cabinet was also asked to take up the issue of whether the excise duty should be increased for petrol and for diesel, if so, in a public meeting on April 11.

The Cabinet has to decide on the new tax regime by April 20.

In a letter to the prime minster on March 26, the committee also asked for a detailed proposal on the tax regime for petrol, diesel and petrol blends.

The committee had recommended that petrol and petrol blend excise duty be increased by 50% for 2018-19.

The committee also said that diesel excise duties be increased in the same way.

In April 2017, the government proposed to increase excise duty for diesel to 20%, which was accepted by the committee.

However, the new government has decided to scrap the excise duties for petrol in April 2020.

The new excise duty will be payable on petrol from April 6, 2019 and diesel from April 5, 2020. 

On diesel, the excise is levied on April 7, 2019 for petrol with a duty of 1.5% and on April 12, 2019 on diesel with a 5% duty.

The new tax will be levied on the same day as the petrol tax, which is expected to bring in a revenue of Rs 9,600 crore ($1.08 billion) for the government.


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