Economy

Centre cuts jet fuel and diesel taxes, hikes petroleum crude export tax

Centre scrapped the ₹4 per litre levy on Aviation Turbine Fuel (ATF) exports.

Centre scrapped the ₹4 per litre levy on Aviation Turbine Fuel (ATF) exports. | Photo Credit: Getty Images/iStockphoto

The Centre on Tuesday raised the windfall tax on crude petroleum producers by 4.41%, scrapped the ₹4 per litre levy on Aviation Turbine Fuel (ATF) exports, and reduced the cess on the export of diesel from ₹11 to ₹5 a litre.

The changes will come into effect from August 3.

The government had levied fresh taxes on the export of petrol, diesel and ATF as well as the domestic sale of crude oil, on July 1, in view of runaway global prices, with a plan to review the taxation levels every fortnight.

Tuesday’s revision takes the cess on the production of each tonne of petroleum crude to ₹17,750 from ₹17,000 imposed from July 20.

The levy, aimed at reining in windfall profits for domestic oil producers who sell their output at international parity prices even to domestic refineries, was ₹23,250 a tonne between July 1 and July 19.


Our code of editorial values

  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

Printable version | Aug 3, 2022 2:07:20 pm | https://www.thehindu.com/business/Economy/centre-cuts-jet-fuel-and-diesel-taxes-hikes-petroleum-crude-export-tax/article65718490.ece