Representational Image. File pic.
The government on Wednesday said it has cut windfall gains tax on exports of diesel and aviation turbine fuel (ATF), while keeping the duty on petrol unchanged, as part its fortnightly review of duties on petroleum products, reported news agency PTI.
The new rates will come into effect from Thursday, October 1, a Finance Ministry notification said.
As per the revised rates, the rate of special additional excise duty (SAED) along with road and infrastructure cess on export of diesel will now be Rs 16 per litre, from Rs 20 a litre announced a fortnight ago. SAED on export of ATF is set at Rs 10.5 per litre, compared to Rs 15 per litre earlier.
The duty on petrol exports has been kept unchanged at Rs 0.5 per litre.
The ministry also said that the existing duty rates on petrol and diesel cleared for domestic consumption have been kept unchanged.
The government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight, amid escalating tensions in West Asia, and from May 16 the levy was imposed on petrol exports. This was done to increase domestic availability of the fuel and also prevent exporters from taking undue advantage of the surging crude oil prices. The latest revision comes amid volatility in global crude oil prices amid renewed US-Iran conflict.
In the previous revision, effective September 16, SAED along with road and infrastructure cess on export of diesel was reduced to Rs 20 per litre, from Rs 25 earlier. The government had also cut the SAED on export of ATF to Rs 15 per litre from Rs 19 a litre earlier.
The levy on petrol exports had been reduced to Rs 0.5 per litre from Rs 1.5 per litre earlier. The government had added that there was no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.
A wind fall tax is a levy that government imposes on companies or sectors that experience sudden surge in profits triggered by geopolitical conflicts or global supply shortages. It is done to mitigate economic volatility, while also generating revenue for the government.
(With inputs from PTI)
