<p>The government on Friday said it has reduced the <a href="https://www.mid-day.com/business/business-news/article/centre-hikes-windfall-tax-on-diesel-atf-to-boost-domestic-fuel-availability-23640064" target="_blank" rel="none noopener">windfall tax on diesel exports</a>, while increasing the duty on petrol exports for the fortnight beginning October 16, according to news agency PTI.</p>
<p>It kept the levy on Aviation Turbine Fuel (ATF) exports unchanged at Rs 10.5 per litre. The revisions are part of the government's fortnightly review of duties on petroleum products.</p>
<p>As per the revised rates, the Special Additional Excise Duty (SAED), along with the road and infrastructure cess, on diesel exports will now be Rs 8.5 per litre, the Finance Ministry said in a statement. It was at Rs 16 per litre, a fortnight earlier.</p>
<p>However, the duty on petrol exports has been increased to Rs 2.5 per litre, from Rs 0.5 per litre earlier.</p>
<p>The ministry clarified that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.</p>
<h2>What were the rates earlier?</h2>
<p>In the previous <a href="https://www.mid-day.com/business/business-news/article/centre-cuts-windfall-tax-on-diesel-atf-exports-petrol-duty-unchanged-23652755" target="_blank" rel="none noopener">revision effective October 1, the government had reduced the windfall tax on diesel and ATF</a>, while retaining the levy on petrol.</p>
<p>It had reduced the SAED along with road and infrastructure cess on export of diesel to Rs 16 per litre, from Rs 20 a litre earlier. SAED on export of ATF was at Rs 10.5 per litre, compared to Rs 15 per litre earlier.</p>
<p>The duty on petrol exports had been kept unchanged at Rs 0.5 per litre.</p>
<h2>Why the government imposed this duty?</h2>
<p>The government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight, amid escalating tensions in West Asia, and from May 16 the levy was imposed on petrol exports. This was done to increase domestic availability of the fuel and also prevent exporters from taking undue advantage of the surging crude oil prices. The latest revision comes amid volatility in global crude oil prices.&nbsp;</p>
<h2>What is windfall tax?</h2>
<p><a href="https://www.mid-day.com/business/business-news/article/government-cuts-windfall-tax-on-petrol-diesel-and-atf-exports-23650430" target="_blank" rel="none noopener">A wind fall tax</a> is a levy that government imposes on companies or sectors that experience sudden surge in profits triggered by geopolitical conflicts or global supply shortages. It is done to mitigate economic volatility, while also generating revenue for the government.&nbsp;</p>
<p><em><strong>(With inputs from PTI)</strong></em></p>

ATF duties were left unchanged at Rs 10.5 per litre. The government revises the duties on petroleum products each fortnight

Centre slashes windfall tax on diesel, hikes duty on petrol

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It kept the levy on Aviation Turbine Fuel (ATF) exports unchanged at Rs 10.5 per litre. The revisions are part of the government's fortnightly review of duties on petroleum products

Government slashes windfall tax on diesel to Rs 16, hikes duty on petrol to Rs 2.5

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Home / Business / Business News / Article / Government slashes windfall tax on diesel to Rs 16, hikes duty on petrol to Rs 2.5