The government on Monday hiked windfall gains tax on exports of diesel and aviation turbine fuel (ATF), while retaining the levy on petrol for the fortnight
beginning June 16. The rate of special additional excise duty (SAED) on export of diesel will be Rs 14/litre, up from Rs 13.5/litre at present. SAED on export of ATF will be Rs 12.5/litre, up from Rs 9.5/litre. There is no change in the rate of duty on exports of petrol and it continues to be at Rs 1.5 per litre. The Finance Ministry in a notification said the duty hikes will be effective from June 16. Also, there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption. Amid escalating tensions in West Asia caused by the US-Israel attack on Iran, followed by sweeping retaliation, the government had on March 26 imposed an export duty on diesel and ATF and revised the rate every fortnight. On May 16, it levied export duty on petrol. The windfall tax was levied to increase domestic availability of the fuel amid the war in West Asia.
The move is 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 is to ensure domestic availability of petroleum products by disincentivising exports in the backdrop of the West Asia crisis.
