NEW DELHI, May 31: The Centre has reduced the windfall gains tax on exports of petrol, diesel and aviation turbine fuel (ATF), with the revised rates coming into effect from June 1, according to a Finance Ministry notification.
The special additional excise duty (SAED) on petrol exports has been cut by half from Rs 3 per litre to Rs 1.5 per litre. The levy on diesel exports has been reduced from Rs 16.5 per litre to Rs 13.5 per litre, while the duty on ATF exports has been lowered from Rs 16 per litre to Rs 9.5 per litre.
The ministry also announced that the road and infrastructure cess on exports of petrol and diesel will be nil. There is, however, no change in the existing duty rates on petrol and diesel meant for domestic consumption.
The latest revision follows a series of adjustments made since March, when the government imposed export duties on petroleum products to boost domestic availability amid disruptions caused by the conflict involving Iran, the United States and Israel.
The government had initially imposed duties of Rs 21.5 per litre on diesel and Rs 29.5 per litre on ATF exports on March 26. These were subsequently raised in April before being reduced in successive fortnightly reviews.
The windfall tax was introduced to discourage excessive exports and ensure adequate domestic supply of petroleum products as global crude oil prices surged following the West Asia conflict. Crude oil prices have remained above USD 100 per barrel in recent days, compared to around USD 73 per barrel before the outbreak of hostilities.
According to the government, the levy was aimed at preventing exporters from benefiting disproportionately from higher international prices while safeguarding domestic fuel availability during the ongoing geopolitical crisis. (Agencies)
