A day after the Union government slashed central excise duty on fuel, Finance Minister Nirmala Sitharaman on Sunday said its entire burden will be borne by the Centre as the reduction has been made in the Road and Infrastructure Cess, which is not shared with the states.
Excise duty on petrol and diesel has four components Basic excise duty, Special Additional excise duty (SAED), Road and Infrastructure Cess (RIC) and Agriculture and Infrastructure Development Cess (AIDC).
Basic excise duty is sharable with states but SAED, RIC & AIDC are non-sharable, so states will not suffer any revenue loss, Sitharaman said in a series of tweets.
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