New Delhi. Amid the huge surge in global crude oil prices, there has been a huge increase in the windfall tax on fuel exports. The central government on Saturday increased the export duty on diesel i.e. windfall profit tax to Rs 55.5 per litre. At the same time, this rate for aviation fuel (ATF) will now be Rs 42 per liter. New rates have come into effect.
In a notification issued by the Finance Ministry, it was said that in order to ensure adequate availability domestically, the Central Government has increased the windfall tax on diesel from Rs 21.5 per liter to Rs 55.5 and the tax on export of ATF has been increased from Rs 29.5 per liter to Rs 42 per liter. Export duty on petrol remains zero at present. According to the notification, this increase in fees will come into effect with immediate effect.
Earlier on March 26, the government had imposed export duty of Rs 21.50 per liter on diesel and Rs 29.5 per liter on ATF. These duties were imposed to increase the availability of fuel in the domestic market amid the ongoing crisis in West Asia.
These duties are aimed at preventing exporters from taking unfair advantage of the difference between international and domestic prices, as global crude oil prices have surged following the crisis in West Asia.
It is noteworthy that after the military attack against Iran by America and Israel on February 28, comprehensive retaliatory action was taken by Tehran. However, on April 8, Iran, the US and Israel agreed to a two-week ceasefire, which has brought the disruption across the Middle East and global energy markets to a halt for the time being.
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