The government on Friday cut the windfall tax on diesel exports and raised the levy on petrol exports for the fortnight beginning October 16.
NEW DELHI — The government on Friday cut the windfall tax on diesel exports and raised the levy on petrol exports for the fortnight beginning October 16.
The duty on ATF exports has been retained at INR 10.5 per litre for the fortnight.
The Special Additional Excise Duty (SAED), along with the road and infrastructure cess, on diesel exports will now be INR 8.5 per litre, down from INR 16 per litre.
The duty on petrol exports has been hiked to INR 2.5 per litre, from INR 0.5 per litre, for the next fortnight.
The Finance ministry in a notification said the duty hikes will be effective from October 16.
Amid escalating tensions in West Asia, the government 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 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.
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 crises.