New Delhi, Jun 30 (PTI) The government on Tuesday hiked the windfall gains tax on petrol exports, while lowering the levy on diesel and ATF, for the fortnight beginning July 1.

The rate of special additional excise duty (SAED) on the export of diesel will be Rs 8.5 per litre, down from the current Rs 14/litre. SAED on export of ATF will be Rs 7.5/litre, lower than Rs 12.5/litre at present.

However, the duty on exports of petrol has been hiked to Rs 4/litre, from Rs. 1.5 per litre.

The Finance Ministry, in a notification, said the duty hikes will be effective from July 1.

Amid escalating tensions in West Asia, the government had on March 27 imposed an export duty on diesel and ATF and revised the rate every fortnight. Beginning May 16, an export duty was levied on petrol.

At the time of imposition of the export levy in March, exemption was provided for exports of petrol, diesel and ATF made by Public Sector Oil Companies to Nepal, Bhutan, Bangladesh and Sri Lanka.

The said exemption has now been extended to exports made by Public Sector Oil Companies to Mauritius and Maldives also, the finance ministry said.

The ministry also said that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

The windfall tax was levied to increase domestic availability of the fuel amid the war in West Asia.

They 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.

The windfall tax was intended to ensure domestic availability of petroleum products by disincentivising exports against the backdrop of the West Asia crises. PTI JD MR

Windfall tax on petroleum exports revised, with lower diesel and ATF levies and a higher petrol export duty. Windfall gains tax on petroleum exports was revised for the fortnight beginning July 1, with the levy on diesel exports reduced and the levy on ATF exports reduced, while the duty on petrol exports was increased. The revised special additional excise duty applies to exports only, and there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption. The exemption earlier available for exports of petrol, diesel and ATF by Public Sector Oil Companies to Nepal, Bhutan, Bangladesh and Sri Lanka was extended to similar exports to Mauritius and Maldives.