The Central Government has again increased the Windfall Gain Tax levied on the export of diesel. Along with this, there has been a huge increase in the windfall gain tax on the export of airplane fuel.
New Delhi: The Central Government has again increased the Windfall Gain Tax levied on the export of diesel. Along with this, there has been a huge increase in the windfall gain tax on the export of airplane fuel i.e. ATF (Aircraft Fuel). Duty on domestically produced crude oil has also been increased.
According to the report, Tax on export of diesel has been increased from Rs 7 to Rs 13.5 per litre. Windfall gains tax rate on ATF exports has also been increased from Rs 2 per liter to Rs 9. The system of zero tax on the export of petrol will continue. Earlier on August 18, the government increased the windfall gain tax on diesel exports from Rs 5 to Rs 7 per liter. Even before that, on August 2, the windfall gain tax on diesel was reduced from Rs 11 to Rs 5 per liter.
The wind fall gain tax on the export of airplane fuel i.e. ATF (Aircraft Fuel) has been increased drastically. Till now, it was taxed at Rs 2 per litre. It has been increased to Rs 9 per litre. The government had recently abolished the windfall gains tax on it. But on August 18 itself, a tax of Rs 2 per liter was again imposed on it.
As per the notification, the tax on domestically produced crude oil has been increased from Rs 13,000 to Rs 13,300 per tonne. Earlier on August 18, the tax on it was reduced from Rs 17,750 per tonne to Rs 13,000 per tonne. This move of the government will affect the profits of crude producers like ONGC and Vedanta Limited.
In the last few months, after cutting the tax twice, the government has increased it for the second time. This step has been taken at a time when India’s trade deficit has reached a record level. Data released on the first of this month showed that India’s trade deficit widened to a record level in July. This has happened due to the costlier imports due to higher commodity prices and a depreciating rupee.
The trade deficit has tripled to $31.02 billion in July this year due to more imports than exports. In June, it was $ 26.18 billion. The country’s imports grew by 43.59 percent to $66.26 billion in July 2022. It was $46.15 billion in the same month a year ago. At the same time, exports declined 0.76 percent year-on-year to $ 35.24 billion in July 2022. The country’s commodity exports stood at $35.51 billion in July 2021.