In a major push to promote clean energy and reduce dependence on imported crude oil, the government has eliminated central excise duties on petrol blended with higher ethanol levels, extending tax support beyond the current E20 standard. As a result, there will be a nil excise duty rate for fuel blended with ethanol at 22 per cent, 25 per cent, 27 per cent, and 30 per cent. According to a notification issued by the Ministry of Finance, Department of Revenue, the government has amended the primary excise notification dated June 2017 to completely waive excise duty on four specific high-blend fuel slabs.
“22% ethanol blended petrol that is a blend, – (a) consisting, by volume, of 78% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 22% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (b) conforming to the Bureau of Indian Standards specification IS 19850,” the Gazette stated.
