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21/07/2022 04:04pm

Centre slashes windfall tax on fuel exports as crude prices fall globally

image Centre slashes windfall tax on fuel exports as crude prices fall globally

New Delhi, July 21 (KNN) The government on Wednesday removed the additional excise duty equal to Rs 6 per litre on petrol exports, while that on diesel exports has been cut to Rs 11 per litre from Rs 13 per litre earlier.

Centre has also decreased the windfall tax on domestic crude to Rs 17,000 per tonne from Rs 23,250 per tonne. The export duty on jet fuel has been reduced by Rs 2 to Rs 4 per litre.

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The government also exempted petrol, diesel and ATF from levy of duties when exported from refinery units located in the Special Economic Zones.

This move is in step with  the recent moderation in the global crude prices.

As per reports, no timeline has been given by the finance ministry for the continuation of the levy but the situation will be assessed every 15 days to review the impact of these duty changes.

To deal with the fuel shortage in the country, earlier the government had imposed a special additional excise duty on export of petrol and diesel. The Centre also imposed a cess of Rs 23,250 per tonne (by way of special additional excise duty) or windfall tax on domestic crude being sold to domestic refineries at international parity prices.

The changes bought in the export duty will bring relief to private refiners like Reliance Industries and Nayak energies which are major exporters of the refined products. Reliance will especially benefit as 52 percent of the refining capacity at its Jamnagar complex in Gujarat is in an SEZ.  (KNN Bureau)

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