New Delhi, May 31 (PTI) The government has halved windfall gains tax on export of petrol to ₹1.5 litre, while reducing the levy on diesel to ₹13.5/litre and aviation turbine fuel to ₹9.5/litre effective June 1.
The finance ministry in a notification said road and infrastructure cess will be nil on export of petrol and diesel.
Also, there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
The special additional excise duty (SAED) on petrol at ₹3/litre was imposed on May 16 and the fortnightly review slashed it to ₹1.5/litre from June 1.
The duty on export of diesel has been reduced to ₹13.5 per litre, from ₹16.5 per litre, and aviation turbine fuel to ₹9.5 per litre, from ₹16 per litre from June 1.
The government had on March 26 imposed an export duty of ₹21.50 a litre on diesel, and ₹29.5 a litre on ATF. In the review on April 11, the duties were hiked to ₹55.5/litre and ₹42/litre. In the April 30 review, they were cut to ₹23/litre and ₹33/litre, and further slashed to ₹16.5/litre and ₹16/litre on May 16.
The windfall tax was levied to increase domestic availability of the fuel amid the US-Israel and Iran war.
It was also aimed at not allowing exporters to take undue advantage due to price differences as globally crude oil prices had risen since the beginning of the war.
On February 28, the United States and Israel launched military strikes against Iran, triggering sweeping retaliation from Tehran.
Crude oil prices have remained above USD 100 per barrel over the past week, from the about USD 73 per barrel before the war.
The windfall tax was to ensure domestic availability of petroleum products by disincentivising exports against the backdrop of the West Asia crisis, the ministry said.
