Central Excise Day

Central Excise was introduced by the British in 1944.

Economic Control: The Act allowed the British colonial government to exert greater control over Indian industries by imposing excise duties. This economic control was a point of contention and added to the grievances against British rule.
Revenue Generation: The revenue generated from excise duties was used to fund the colonial administration, which further fueled the Indian independence movement as it highlighted the economic exploitation of India by the British.

Textiles: The textile industry, one of India’s largest industries at the time, was significantly affected by the excise duties imposed under the Act.
Salt: The Act also included provisions related to the production and taxation of salt, which was a critical issue during the independence movement, famously highlighted by Mahatma Gandhi’s Salt March.
Other Manufacturing Industries: Various other manufacturing sectors, including tobacco, sugar, and metals, were also subject to excise duties.

Post-Independence Amendments: After independence, the Act was amended several times to align with India’s economic policies and development goals. The Central Excise and Salt Act was renamed the Central Excise Act in 1966.
Introduction of GST: With the introduction of the Goods and Services Tax (GST) in 2017, many of the excise duties were subsumed under GST. However, excise duties still apply to certain products like petroleum, alcohol, and tobacco.

Modernization: The Central Excise Bill of 2024 aims to modernize the excise duty system, simplify compliance, and align it with GST and customs frameworks. This includes reforms to enhance digital solutions and promote a business-friendly environment.
Ongoing Relevance: While GST has largely replaced excise duties for most goods, excise duties remain relevant for specific products and continue to be a significant source of revenue for the government.

Indirect Taxation: Excise duties are an indirect tax, meaning they are ultimately passed on to consumers. This can lead to higher prices for goods subject to excise duties, such as fuel and alcohol.
Economic Contribution: The revenue generated from excise duties is used for public welfare initiatives, infrastructure development, and other government expenditures, indirectly benefiting the common man.

references and further reading

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