The Central Government has made significant changes to fuel export duties (windfall tax) by increasing the tax on exports of diesel and aviation turbine fuel (ATF), while reducing the export duty on petrol. The decision has been taken in view of global crude oil prices and the condition of the domestic fuel market.
The government periodically reviews the windfall tax based on fluctuations in international crude oil prices. When companies earn higher profits from exports, a portion of those additional earnings is collected as tax.
The increase in export duty on diesel and ATF may have some impact on their exports, while the reduction in duty on petrol is expected to encourage exports. The government's objective is to ensure adequate fuel availability in the domestic market while maintaining revenue balance.
