New Delhi: The government has raised the windfall gains tax on exports of diesel and aviation turbine fuel (ATF), while trimming the levy on petrol for the fortnight starting July 16. The Special Additional Excise Duty (SAED) on diesel exports has been lifted to Rs 15.5 a litre, up from Rs 8.5 a litre. The levy on ATF exports has similarly been raised to Rs 14.5 per litre, against Rs 7.5 per litre which was in force till July 15.
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In contrast, the export duty on petrol has been pared down to Rs 2.5 per litre from Rs 4 per litre. The Finance Ministry, in a notification, said the revised rates would take effect from July 16.
The ministry clarified that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
Amid mounting tensions in West Asia, the government had on March 27 first imposed an export duty on diesel and ATF, revising the rates every fortnight thereafter. An export duty on petrol was subsequently introduced from May 16.
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The windfall tax was levied to boost domestic availability of these fuels against the backdrop of the war in West Asia. The measure was also designed to prevent exporters from reaping undue gains from the price differential, as global crude oil prices had climbed since the conflict began. In effect, the tax sought to secure domestic supply of petroleum products by disincentivising exports during the West Asia crisis.
