NEW DELHI: The Centre has exempted petrol blended with higher levels of ethanol from excise duty as it seeks to make fuel beyond E20 more attractive for consumers and push voluntary use.The Central Board of Indirect Taxes and Customs (CBIC) issued notifications on Wednesday, exempting ethanol blended petrol (EBP) grades E22, E25, E27 and E30, containing 22% to 30% ethanol, from applicable central excise duties, subject to excise duty having already been paid on petrol and GST having been paid on the ethanol used for blending.“The objective is only to remove the deeming fiction under the central excise law that could otherwise result in levy of excise duty again upon the activity of blending of ethanol with petrol, thereby avoiding any incidence of double taxation,” said an official.The exemption mirrors the tax treatment available to existing ethanol-blended petrol grades such as E5, E10 and E20, and does not amount to a reduction in excise duty on petrol sold for domestic consumption, officials said.At a press conference, Sujata Sharma, joint secretary in petroleum ministry, said: “A clarification has been issued for higher blends and there is nothing new with higher BIS standards available. The same excise duty waiver has been extended to E22, 25, 27 and E30. This is a preliminary prerequisite for eventually introducing higher blends but does not convey anything about roll out of higher blends as of now as that will only be done after extensive testing and consultation.”
