Govt Cuts Windfall Tax on Petrol, Diesel, ATF Exports

NEW DELHI, Sept 17: The Government has reduced the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF) for the fortnight beginning September 16, according to a Finance Ministry notification.

The special additional excise duty (SAED), along with road and infrastructure cess, on diesel exports has been cut to Rs 20 per litre from Rs 25 per litre previously.

For ATF exports, the SAED has been reduced to Rs 15 per litre from Rs 19 per litre, while the duty on petrol exports has been slashed to Rs 0.50 per litre from Rs 1.50 per litre in the previous fortnight.

The revised rates took effect from September 16.

The Government had imposed export duties on diesel and ATF on March 27 amid escalating tensions in West Asia and has been reviewing the rates every fortnight. The levy on petrol exports was introduced from May 16.

The windfall tax was introduced with the objective of ensuring adequate domestic availability of petroleum products and preventing exporters from benefiting disproportionately from price differences following a rise in global crude oil prices amid the West Asia conflict.

The Finance Ministry clarified that there has been no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

The fortnightly revision of the levy forms part of the Government’s measures to regulate exports and ensure adequate availability of petroleum products in the domestic market amid volatility in international energy prices. (Agencies)