FY24 excise duty collection target may be cut by Rs 45,000 crore

New Delhi: The Centre may revise the FY24 excise duty collection target downwards by ₹45,000 crore, factoring in some possible fiscal support if crude oil prices continue to remain elevated, people familiar with deliberations told ET.

This revision is not likely to impact the overall revenue mopup as the other resources may make up for the shortfall. “Excise collection target may be revised downwards in the revised estimates by about ₹45,000 crore than in BE (budget estimates),” a senior finance ministry official said.

A final call on any reduction would be taken at the highest political level. The Centre is starting the budgetary exercise from next week.

The official said the Centre’s excise collection is already lower than anticipated and the government also wants to take into account higher international crude prices. “We are keeping a close watch on the oil prices… There is no immediate concern but going forward we are budgeting for some headroom to absorb any future shock,” the official added.

The Cabinet on Wednesday raised the domestic cooking gas subsidy for Ujjwala scheme beneficiaries by ₹100 per cylinder to ₹300. The government is also expected to cut taxes on fuels to lower prices ahead of the upcoming state and general elections in the summer of 2024.