The central government has notified windfall taxes on petrol and diesel exports, setting the levy at 2.5 per litre for petrol and 8.5 per litre for diesel. The revised rates will apply from 16 October.
The decision was formalised through an official order issued late Thursday night. It applies to exports of the petroleum products covered by the notification.
New export tax rates
The notified rates are:
- Petrol exports: 2.5 per litre
- Diesel exports: 8.5 per litre
A windfall tax is intended to tax additional profits earned under exceptional circumstances. The order identifies the levy as applicable to petroleum product exports.
The notification changes the tax treatment of petrol and diesel shipments leaving the country from 16 October. further details on the circumstances behind the order or its effect on export volumes is not yet available.
Conclusion
The government has imposed windfall taxes of 2.5 per litre on petrol exports and 8.5 per litre on diesel exports, effective from 16 October.
Frequently Asked Questions
Q. What tax has been imposed on petrol exports?
A windfall tax of 2.5 per litre has been imposed on petrol exports.
Q. What tax has been imposed on diesel exports?
A windfall tax of 8.5 per litre has been imposed on diesel exports.
Q. When will the new rates take effect?
The new rates will take effect from 16 October.
Q. How were the new rates announced?
The government notified them through an official order issued late Thursday night.
Q. What is the stated purpose of the windfall tax?
Its stated purpose is to tax additional profits earned under exceptional circumstances.
Q. Which products are covered?
The levy applies to petrol and diesel exports.
