Union Budget 2019 India: In what may come as bad news for fuel buyers, Finance Minister Nirmala Sitharaman proposed special additional excise duty of Rs 1 per litre on petrol and diesel for road and infrastructure sectors.
Union Budget 2019 India: In what may come as bad news for fuel buyers, Finance Minister Nirmala Sitharaman proposed additional excise duty and cess of Rs 1 per litre each on petrol and diesel for road and infrastructure sectors. “Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol and diesel. I propose to increase Special Additional Excise duty and Road and Infrastructure Cess each by one rupee a litre on petrol and diesel. It is also proposed to increase custom duty on gold and other precious metals from 10% to 12.5%.,” Finance Minister said in the budget speech.
The prices of petrol and diesel remained unchanged across the country for the third successive day on Friday (July 5). A litre of petrol today costs Rs 70.51 while diesel costs Rs 64.33 per litre. The prices on Thursday also closed on the same note.
The global brokerage Morgan Stanley, earlier this week, had reduced the long-term Brent crude prediction to$60 per barrel from $65 per barrel. The brokerage had said that the global crude oil market is largely balanced in 2019 after OPEC and Russia agreed to extend their supply reductions by even longer than expected.
The global crude oil market sawe a tumble on Friday On Friday as crude prices fell, pressured over worries related with the outlook for global economic growth.The budget also proposed increase in import duty on gold and precious metals increased to 12.5 per cent from 10 per cent.
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In her budget speech, Finance Minister Nirmala Sitharaman stressed on the measures to revive domestic and foreign investment. There is also a dire need to invest heavily in infrastructure, digital economy and job creation in MSMEs or small businesses, she added.
Finance Minister Nirmala Sitharaman on Thursday presented the Economic Survey in Parliament had projected GDP (gross domestic product) growth at 7 per cent in the 2019-20 fiscal year from an estimated 6.8 per cent in the previous year. The Survey had also said that the rate of investment has been seen picking up in FY20 on higher credit growth and improved demand.