Government cuts windfall tax on diesel, ATF exports amid West Asian tensions | Today’s news
The government on Wednesday reduced windfall tax on diesel and aviation turbine fuel (ATF) exports, leaving it flat on petrol for a fortnight from October 1.
The rate of Special Additional Excise Duty (SAED) along with road and infrastructure rate on diesel exports will now ₹16 per litre, less than ₹20 per liter. The SAED for ATF exports is set at ₹10.5 per liter vs ₹Currently 15 per liter.
The gasoline export duty remained ₹0.5 per liter for the next fortnight.
In a notification, the Ministry of Finance said that the increase in duty will be effective from 1
Amid escalating tensions in West Asia, the government imposed an export duty on diesel and ATF on March 27, revising the rate every fortnight. From May 16, a tax was imposed on the export of gasoline.
The ministry also said there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
The windfall tax was levied to increase domestic fuel availability amid the war in West Asia. It was also aimed at preventing exporters from taking undue advantage of price differentials as global oil prices have risen since the start of the war.
The windfall tax was intended to ensure domestic availability of petroleum products by discouraging exports at a time of crisis in West Asia.
