Govt cuts windfall tax on diesel, ATF exports; petrol duty unchanged

The latest market report highlights that The government on Wednesday trimmed the windfall upside tax on exports 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 diesel exports will now be Rs 16 per litre, down from Rs 20 a litre. SAED on ATF exports has been reduced to Rs 10.5 per litre from Rs 15 per litre at present.

The duty on petrol exports has been retained at Rs 0.5 per litre for the next fortnight.

The finance ministry, in a notification, stated the revised duty rates 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 additionally imposed on petrol exports.

The ministry additionally stated there was no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

The windfall tax was levied to gain domestic availability of fuel amid the war in West Asia. It was additionally aimed at preventing exporters from taking undue advantage of price differences, particularly as global oil price marks rose after the conflict began.

The levy was intended to ensure domestic availability of petroleum products by discouraging exports amid the West Asia crisis.