New Delhi, 01 October (H.S.): The central government has reduced the windfall tax imposed on exports of diesel and aviation turbine fuel (ATF), while leaving the tax rate on petrol exports unchanged. The revised rates came into effect on Thursday, October 1.

According to a notification issued by the Ministry of Finance, the government has lowered the windfall tax on diesel exports by Rs 4 per litre and on ATF exports by Rs 4.50 per litre.

The export duty on diesel has been reduced from Rs 20 per litre to Rs 16 per litre. Similarly, the levy on ATF exports has been cut from Rs 15 per litre to Rs 10.50 per litre. The export duty on petrol remains unchanged at Rs 0.50 per litre.

The revised rates will remain in force for two weeks.

The latest reduction follows another cut announced by the government on September 16. At that time, the levy on diesel was reduced by Rs 5 per litre, while the duty on ATF was lowered by Rs 4 per litre, bringing their respective rates to Rs 20 and Rs 15 per litre.

Since September 1, the government has cumulatively reduced the windfall tax on diesel exports by Rs 9 per litre and on ATF exports by Rs 8.50 per litre.

The windfall tax is levied on certain petroleum products when the government seeks to capture a portion of exceptional gains arising from favourable market conditions. The rates are reviewed periodically and can be revised in response to changes in international crude oil and refined-product prices.

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Hindusthan Samachar / Jun Sarkar