NEW DELHI: The government has cut windfall gains tax on exports of petrol, diesel and ATF for the fortnight beginning August 15.
The rate of special additional excise duty (SAED) on the export of diesel is now Rs 24 per litre, down from Rs 25.5 a litre. SAED on exports of ATF is set at Rs 19.5/litre, as against Rs 22/litre earlier.
The duty on petrol exports has been cut to nil effective August 15, from Rs 3.5 per litre levied on August 3.
The finance ministry, in a notification, said the duty hikes will be effective from August 15.
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 crisis.