Which of the following components of Central Government taxes on petroleum products is/are not shareable with the States?
- 1. Basic Excise Duty
- 2. Additional Excise Duty
- 3. Special Additional Excise Duty
Select the correct answer using the code given below.
1 and 2 only
1, 2 and 3
3 only
2 and 3 only
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CDS-1 – 2024
– Basic Excise Duty (BED), now often termed Union Excise Duty, levied on petroleum products by the Central Government, is typically shareable with the states as part of the divisible pool as per the recommendations of the Finance Commission. Thus, statement 1 is shareable.
– Additional Excise Duty (AED) and Special Additional Excise Duty (SAED) levied by the Central Government on petroleum products fall outside the divisible pool and are not shareable with the states. These often take the form of cesses or surcharges meant for specific purposes (like infrastructure development). Thus, statements 2 and 3 are not shareable.