Petrol-diesel.
The central government on Tuesday increased the windfall gain tax on petrol exports for the fortnight starting July 1, while reduced the levy on diesel and ATF. With this, the rate of Special Additional Excise Duty (SAED) on export of diesel will be reduced from the current Rs 14/litre to Rs 8.5 per litre. SAED on export of ATF will be Rs 7.5/litre, which is less than the current Rs 12.5/litre. However, the duty on export of petrol has been increased from Rs 1.5 per liter to Rs 4/litre.
In the notification issued by the Finance Ministry, it was said that the increase in duty will be effective from July 1. Amid rising tensions in West Asia, the government had imposed export duty on diesel and ATF on March 27 and changed the rates every fortnight. From 16th May petrol Export duty was imposed on.
Government changed windfall tax rates
While imposing export levy in March, exemption was given on exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka.
The Finance Ministry said that this exemption has now been extended to the exports made by public sector oil companies to Mauritius and Maldives. The ministry said that there has been no change in the existing duty rates on petrol and diesel approved for domestic use.
Diesel and ATF got relief
Windfall tax was imposed to increase domestic availability of fuel amid the war in West Asia. Its purpose was also to ensure that exports could not be taken advantage of due to the difference in prices, because the prices of crude oil had increased worldwide since the start of the war.
The purpose of the windfall tax was to ensure domestic availability of petroleum products by discouraging exports in the background of the West Asia crisis.
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