New Delhi | The government has cut the windfall gains tax on the export of diesel to Rs 23 per litre and aviation turbine fuel to Rs 33/litre, effective Friday.
The finance ministry, in a statement, said there will be no change in existing excise duty rates on petrol and diesel for domestic consumption.
The special additional excise duty on export of diesel was reduced to Rs 23 per litre from Rs 55.5 per litre, and aviation turbine fuel to Rs 33 per litre from Rs 42 per litre.
The road and infrastructure Cess on the export of diesel will be nil for the next fortnight, beginning May 1.
The rate of duty on export of petrol will remain nil, said the finance ministry statement issued late on Thursday.
The government had, on March 26, imposed an export duty at Rs 21.50 a litre on diesel, and on ATF at Rs 29.5 a litre. In a review on April 11, the duties were hiked to Rs 55.5/litre and Rs 42/litre, respectively.
The windfall tax was levied to increase domestic availability of the fuel amid the US-Israel and Iran war.
The levies were 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 surged to a four-year high of USD 126 per barrel, from about USD 73 per barrel before the war.
The windfall tax was to ensure domestic availability of petroleum products by disincentivising exports in the backdrop of the West Asia crises, the ministry said.
