The government on Monday increased the windfall tax (windfall tax) on exports of diesel and aviation turbine fuel (ATF) for a period of 15 days from today (June 16). However, there has been no change in the duty on export of petrol.
Under the new system, the rate of Special Additional Excise Duty (SAED) on export of diesel has been increased to Rs 14 per liter, which was earlier Rs 13.5 per liter. At the same time, SAED on export of aviation fuel has been increased to Rs 12.5 per liter, which was earlier Rs 9.5 per liter.
No change in petrol duty rate
There has been no change in the duty rate on export of petrol and it remains at Rs 1.5 per litre. The Finance Ministry said in a notification that the fee increase will come into effect from June 16 (today). Also, there has been no change in the existing duty rates on petrol and diesel for domestic consumption.
Re-implementation of windfall tax system
Let us tell you that after increasing tension in the Middle East, the windfall tax system was re-implemented on March 26. Since then, the government has been reviewing and changing the export duty every 15 days based on changes in international crude oil prices and refining margins. On May 16, the government had also imposed this levy (tax) on the export of petrol.
Why was this decision taken?
Export duty has been imposed to ensure adequate supply of petroleum products in the country. That too at a time when global crude oil prices have increased due to geopolitical tension. The purpose of this step is to prevent excessive exports through refiners who take advantage of higher prices in the international market, so that the domestic fuel supply remains secure. The government said the windfall tax system helps prevent exporters from taking advantage of the price differential between domestic and foreign markets during global supply disruptions and price spikes.
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