New Delhi: The government has reduced the windfall tax on exports of petrol, diesel, and aviation turbine fuel (ATF) for the fortnight commencing August 15.

The special additional excise duty (SAED) imposed on diesel exports has been lowered to 24 rupees per litre from 25.5 rupees per litre. Meanwhile, the SAED on ATF exports has been reduced to 19.5 rupees per litre, down from 22 rupees per litre previously.

The duty levied on petrol exports has been completely removed effective August 15, down from 3.5 rupees per litre set on August 3.

A notification issued by the Finance Ministry confirmed that the revised tax rates take effect from August 15.

Following escalating conflict in West Asia, the government introduced an export levy on diesel and ATF on March 27, adjusting the rates every fortnight. On May 16, petrol exports were brought under the tax regime.

The ministry clarified that duty rates on petrol and diesel distributed for internal domestic consumption remain unchanged.

The windfall tax was introduced to boost domestic fuel supplies amid ongoing instability in West Asia.

The measure was also designed to deter exporters from reaping windfall gains from global price disparities, as international crude oil prices surged following the outbreak of conflict.

Ultimately, the windfall tax aimed to guarantee adequate domestic availability of petroleum products by discouraging export sales during the West Asia crisis.

PTI