Windfall Tax on Diesel, ATF Exports Hiked; Petrol Levy Scrapped

New Delhi, Nov 2 (KNN) The government has raised the windfall gains tax on exports of diesel and aviation turbine fuel (ATF), while reducing the levy on petrol exports to zero for the fortnight beginning October 31.

The special additional excise duty (SAED) on ATF exports has been increased marginally to Rs 11 per litre from Rs 10.5 per litre. The combined SAED and road and infrastructure cess on diesel exports has been raised to Rs 11.5 per litre from Rs 8.5 per litre, PTI reported.

The levy on petrol exports has been reduced to nil from Rs 2.5 per litre.

The Finance Ministry, in a notification, said the revised rates would take effect from October 31. There is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

Fortnightly Revisions

The government introduced export duties on diesel and ATF on March 27 amid escalating tensions in West Asia and began revising the rates every fortnight. The levy was extended to petrol exports from May 16.

The windfall tax was introduced to discourage exporters from taking advantage of the difference between domestic and international fuel prices, particularly as global crude oil prices rose amid the conflict. The measure was also aimed at maintaining adequate domestic availability of petroleum products.

(KNN Bureau)