Windfall Tax Cut On Diesel, ATF And Petrol Exports From September 16: Check New Rates

The government of India has reduced windfall gains tax on exports of diesel, aviation turbine fuel (ATF) and petrol for the fortnight from September 16th.

The export levy on diesel has been cut to Rs 20 per litre, ATF to Rs 15 per litre and petrol to Rs 0.5 per litre. There is no change in existing duty rates on petrol and diesel cleared for domestic consumption.

The revised rates post reduction will came into effect from September 16 for the fortnight.

According to a Finance Ministry notification, the special additional excise duty (SAED) and road and infrastructure cess on diesel exports have been reduced to Rs 20 per litre from Rs 25 per litre.

The export duty on ATF has been lowered to Rs 15 per litre from Rs 19 per litre, while the levy on petrol exports has been cut to Rs 0.5 per litre from Rs 1.5 per litre.

No Change In Domestic Petrol And Diesel Duties

As per the Finance Ministry notification, there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption which means the new rate revision applies to exports and does not, by itself, result in a reduction in the duties applicable to petrol and diesel supplied to the domestic market.

At the same time the export duty changes also do not automatically mean that there will be reduction in retail petrol or diesel prices at fuel stations.

Reason behind Windfall Taxes Revision

India introduced windfall profit taxes on crude oil production and petroleum product exports in July 2022, during higher global energy prices and concerns over exceptional earnings in the energy sector.

The government reviewed these levies according to the changing market conditions.

Because of the escalating tensions in West Asia, export duties on diesel and ATF were imposed on March 27 this year and the rates have since then revised every fortnight.

The levy on petrol exports was introduced later, from May 16 this year