Taming twin deficit: Tax imposed on fuel exports, levy on crude doubled
Seeking to stem the rupee’s free fall and lay its hands on a chunk of the “windfall profits” reaped by some of the domestic firms on the back of elevated global oil prices, the government on Friday imposed taxes on exports of petrol, diesel and aviation turbine fuel (ATF), and more than doubled the levy on domestic crude and capped exports from non-SEZ units this fiscal.
The move is also aimed at addressing the crunch in the domestic fuel market, as private refiners neglected supplies to retail outlets in the country, while tapping the highly remunerative export markets.
