Mumbai, Nov. 5 -- The government has raised the windfall gains tax on diesel and Aviation Turbine Fuel (ATF) exports while removing the levy on petrol exports for the fortnight beginning October 31. The changes are intended to support domestic fuel availability and respond to shifts in international market conditions.
The rate of special additional excise duty, along with the road and infrastructure cess on diesel exports, has been increased to Rs. 11.5 per litre from Rs. 8.5 per litre. The duty on ATF exports has also been raised, reaching Rs. 11 per litre from Rs. 10.5 per litre.
In contrast, the levy on petrol exports has been reduced to nil from Rs. 2.5 per litre. The finance ministry notified that all three changes would take effect from October 31 and remain applicable for the next fortnight.
The government said existing duty rates on petrol and diesel cleared for domestic consumption would remain unchanged. The export duty adjustments therefore apply only to shipments of the specified petroleum products to overseas markets.
The windfall tax regime was introduced amid heightened tensions in West Asia, with the duty on diesel and ATF exports imposed on March 27. The rates have since been reviewed every fortnight, while the levy on petrol exports was introduced from May 16.
The measures were designed to discourage exporters from taking advantage of differences between domestic and international fuel prices. They also seek to ensure adequate domestic supplies when global crude oil prices and regional uncertainty create incentives for higher exports.
Published by HT Digital Content Services with permission from Construction World.