Govt to raise Rs 6,000 crore from excise duty hike on fuel, say sources

The government expects to raise around Rs 6,000 crore (US $975 million) from a hike in excise duties on petrol and diesel and the money will partly cover a shortfall in revenue collection so far in the 2014-15 fiscal, a Finance Ministry source said on Thursday.

Earlier, the government has raised excise duty by Rs 1.50 a litre each for the two fuels.

"Excise duty on petrol and diesel has been hiked to partly cover shortfall in tax collections," a senior ministry official told Reuters on condition of anonymity as he is not authorised to speak to the media.

(Reuters)