New Delhi: The government on Tuesday raised the windfall gains tax on petrol exports while reducing the levy on diesel and aviation turbine fuel (ATF), with the revised rates taking effect for the fortnight beginning July 1.
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The export duty on petrol has been increased to Rs 4 per litre, up from Rs 1.5 per litre. In contrast, the special additional excise duty (SAED) on diesel exports has been lowered to Rs 8.5 per litre from Rs 14 per litre, and the SAED on ATF exports cut to Rs 7.5 per litre from Rs 12.5 per litre. The Finance Ministry, in a notification, said the changes would come into force from July 1.
When the export levy was first imposed in March, exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka were kept exempt. That exemption has now been extended to cover such exports to Mauritius and the Maldives as well, the ministry said.
The ministry added that there was no change in the duty rates on petrol and diesel cleared for domestic consumption.
The government imposed an export duty on diesel and ATF on March 27, against the backdrop of rising tensions in West Asia, and has revised the rates every fortnight since. An export duty on petrol was introduced from May 16.
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The windfall tax was put in place to shore up domestic availability of fuel amid the war in West Asia and to prevent exporters from gaining undue advantage from the gap between domestic and international prices, after global crude oil prices climbed following the outbreak of the conflict. The levy was designed to keep petroleum products available at home by discouraging exports during the West Asia crisis.
