Govt Hikes Windfall Tax on Diesel, ATF; Cuts Levy on Petrol Exports

New Delhi: The government has increased the windfall gains tax on exports of diesel and ATF, while lowering the levy on petrol for the fortnight beginning July 16.

The rate of Special Additional Excise Duty (SAED) on diesel exports has been increased to Rs 15.5 a litre from Rs 8.5 a litre. Similarly, SAED on ATF exports has been raised to Rs 14.5 per litre from Rs 7.5 per litre till July 15.

However, the export duty on petrol has been cut to Rs 2.5 per litre, from Rs 4 per litre.

The Finance ministry in a notification said the duty hikes will be effective from July 16.

Amid escalating tensions in West Asia, the government had on March 27 imposed an export duty on diesel and ATF (Aviation Turbine Fuel) and revised the rates every fortnight.

Beginning May 16, an export duty was also imposed on petrol.

The ministry also said that there is 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.

They were also aimed at not allowing exporters to take undue advantage due to price differences as globally crude oil prices had risen since the beginning of the war.

The windfall tax was intended to ensure domestic availability of petroleum products by disincentivising exports in the backdrop of the West Asia crises.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)