Exports of diesel and aviation turbine fuel (ATF) were subject to a higher windfall profits tax on Monday, but the tax on petrol will remain unchanged for the next two weeks starting June 16.
Diesel shipments would be subject to a special additional excise duty (SAED) of Rs 14/litre, up from the current rate of Rs 13.5/litre. An increase from Rs 9.5/litre to Rs 12.5/litre will apply to SAED on ATF exports.
The rate of duty on petrol exports remains unchanged at Rs 1.5 per litre.
The announcement from the Finance Ministry states that the tax hikes would be implemented starting from June 16.
Petrol and diesel approved for home use remain subject to the same tariff rates.
In response to the US-Israeli attack on Iran and the subsequent widespread reprisal, the government placed an export tariff on fuel and ATF on March 26 and raised the rate every two weeks, adding to the already high tensions in West Asia. It began taxing petrol exports on May 16.
In the midst of the war in West Asia, the domestic availability of the fuel was increased through the imposition of the windfall tax. Since crude oil prices have increased worldwide since the start of the war, the move is an attempt to prevent exporters from taking unfair advantage of price discrepancies.
Amidst the West Asia crisis, the domestic availability of petroleum products is ensured through the windfall tax, which disincentivises exports.
Image: Deccan Herald
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