NEW DELHI / AGARTALA, July 5 (TIWN): BJP led central today presented the Union Budget to boost infrastructure and foreign investment at a time when economy is showing signs of slowdown. Taking a pragmatic approach Finance Minister Nirmala Sitharaman today announced no changes in personal income tax rates, hikes excise duty on fuel, increased tax rate for super rich and provide additional tax relief for home loan holders. Among other key announcement, Sitharaman said the digital payments will get cheaper, government will launch an ATM-like One Nation One Card for pan-India travel and a new model rental laws will be unveiled to boost affordable housing. “Crude prices have softened from their highs, this gives me room to review excise duty and cess on petrol and diesel. I proposed to increase special additional excise duty and road and infrastructure cess each one by Rs 1 per litre on petrol and diesel,” Sitharaman said.

The previous Union Budget of 2018-2019 had cut basic excise duty on petrol and diesel by Rs 2 per litre, however, the move did not result in reduction in fuel prices for consumers as the cut in duty had been offset by an additional levy of Rs 8 per litre under Levy of Road and Infrastructure Cess on petrol as well as diesel.

The government has introduced Rs 8 per litre levy of Road and Infrastructure Cess on petrol and diesel but abolished the additional duty of Excise (Road cess) on motor spirit by Rs 6 per litre at the same time – a net impact of Rs 2 per litre addition on the levy of tax on petrol and diesel. Thus the net increase of tax by Rs 2 per litre on fuel was offset by the Rs 2 per liter reduction in basic excise duty.

Petrol and diesel prices remain unchanged across the country for the third consecutive day on Friday. Price of one litre of petrol today stood at Rs 70.51 while diesel costs Rs 64.33 per litre in the national capital.