In a sign that windfall taxes on the oil-sector companies are here to stay, the Centre on Thursday raised the export tax — special additional excise — on exports of diesel and aviation turbine fuel (ATF) to levels even higher than when these imposts were introduced three months ago, and raised the additional excise duty on heavily-taxed domestic crude marginally.
Effective September 1, export of diesel will attract a tax of Rs 13.5/litre, up from Rs 7 previously, while shipments of ATF will be subject to an impost of Rs 9/litre, up from Rs 2. In the fourth fortnightly review of the taxes, the government also raised the tax on domestically-produced crude oil to Rs 13,300/tonne from Rs 13,000, in tandem with crude price increases which will benefit domestic producers, thanks to the “trade parity pricing” they follow.
Though the government has cited a rise in refinery margins for these products for the decision, analysts pointed out that exports of both these fuels have slowed in recent weeks.
