New Delhi: The government on Wednesday cut the windfall gains tax on diesel and ATF exports, while retaining it at the same level for petrol for the fortnight beginning October 1.
The special additional excise duty (SAED), along with the road and infrastructure cess on diesel exports, will now be Rs 16 per litre, down from Rs 20 per litre. SAED on the export of ATF is set at Rs 10.5 per litre, down from Rs 15 per litre. Duty on petrol exports has been retained at Rs 0.5 per litre for the next fortnight.
The Finance Ministry, in a notification, said the duty hikes will be effective from October 1.
Amid escalating tensions in West Asia, the Government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight. Beginning May 16, the levy was imposed on petrol exports. The ministry also said that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
The windfall tax was levied to increase the domestic availability of the fuel amid the war in West Asia. It was also aimed at preventing exporters from taking undue advantage of price differences, as global crude oil prices had risen since the war began.
The windfall tax was intended to ensure domestic availability of petroleum products by disincentivising exports amid the West Asia crisis.