New Delhi, Sept. 30 -- The government on Wednesday cut the windfall gains tax on the export of diesel and aviation turbine fuel (ATF), while retaining it at the same level for petrol for the fortnight beginning October 1.
The rate of special additional excise duty (SAED) along with road and infrastructure cess on the export of diesel will now be Rs 16 per litre, down from Rs 20 a litre. SAED on export of ATF is set at Rs 10.5 per litre, as against Rs 15 per litre currently.
Duty on petrol exports has been retained at Rs 0.5 per litre for the next fortnight. The finance ministry, in a notification, said the duty Cuts will be effective from October 1.
Amid escalating tensions in West Asia, the government had imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight. Beginning May 16, the levy was imposed on petrol exports.
The ministry also said that there was no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
The windfall tax was levied to increase domestic availability of the fuel amid the war in West Asia. It was also aimed at preventing exporters from taking undue advantage due to price differences, as global crude oil prices had risen since the war began.
The windfall tax was intended to ensure domestic availability of petroleum products by disincentivising exports amid the West Asia crisis.
Published by HT Digital Content Services with permission from Millennium Post.