2 weeks ago
India cuts windfall gains tax on petrol, diesel, ATF exports
The government of India charges a special tax on fuel like petrol, diesel and plane fuel when companies send it to other countries.
This tax is called a windfall tax.
It was started because of tensions and war in West Asia that made oil prices go up.
The tax was meant to keep more fuel inside India and stop exporters from making too much money.
Now the government has made the tax smaller.
The tax on petrol exports has been cut all the way to zero.
The taxes on diesel and plane fuel exports are lower than before, but they are still there.
The tax on fuel sold inside India has not changed.
The new rates started on August 15.
The government reviews and changes these taxes every two weeks.
The government cut the windfall gains tax on exports of petrol, diesel and ATF for the fortnight beginning August 15.
Duty on petrol exports was reduced to nil from Rs 3.5 per litre.
Special additional excise duty (SAED) on diesel exports was cut to Rs 24 per litre from Rs 25.5 per litre.
SAED on ATF exports was reduced to Rs 19.5 per litre from Rs 22 per litre.
There was no change in excise duty rates on petrol and diesel for domestic consumption.
- Who
- The Central government of India via the Union Finance Ministry
- What
- Cut the windfall gains tax (SAED) on exports of petrol, diesel and aviation turbine fuel (ATF)
- Where
- India (notification issued from New Delhi)
- When
- Effective August 15, for the fortnight beginning August 15
- Why
- To ensure domestic fuel availability and prevent exporters from taking undue advantage after global crude oil prices rose amid the West Asia war
Key facts
- Petrol export duty
- Reduced to nil from Rs 3.5 per litre
- Diesel export SAED
- Rs 24 per litre, down from Rs 25.5 per litre
- ATF export SAED
- Rs 19.5 per litre, down from Rs 22 per litre
- Effective date
- August 15, for the fortnight beginning August 15
- Domestic consumption duties
- No change in excise duty rates on petrol and diesel
- Export duty history
- Imposed on diesel and ATF from March 27; extended to petrol from May 16
- Windfall tax history
- First imposed in July 2022, scrapped two years later, reintroduced in March
- Reason for levy
- Increase domestic availability and discourage undue exporter gains amid the West Asia crisis; rates revised every fortnight based on global fuel prices
Quotes
Finance Ministry
Indian government finance ministry spokesperson
“There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.”
financialexpress.com
Sources
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