India reimposes windfall export levy on diesel and ATF at Rs 21.5 and Rs 29.5/litre
Refiners' export desks must add Rs21.5/Rs29.5 per litre levy to diesel/ATF exports
Change
India now binds exporters of diesel and aviation turbine fuel to a windfall export levy of Rs 21.5 per litre on diesel and Rs 29.5 per litre on ATF by government order, while simultaneously cutting the special additional excise duty on domestic petrol to Rs 3 per litre and removing it for domestic diesel.
Why it matters
Export consignments of diesel and aviation turbine fuel fall squarely within the levy’s scope as the specified targeted refined products. The levy restores a windfall-tax regime abolished in 2024 and forms part of a package of fuel-tax revisions introduced amid heightened global oil-price volatility.
Implications
- — Export-pricing teams at refiners and oil marketing companies must immediately incorporate the Rs 21.5/litre (diesel) and Rs 29.5/litre (ATF) levy into outbound invoices and contracts — failing to do so will create uncovered tax liabilities and leave exporters absorbing the charge against planned margins.
- — Finance and treasury teams at exporting refiners and oil marketing companies must immediately update tax-remittance and accounting workflows ahead of next shipments — failure will produce incorrect tax filings and financial reporting discrepancies.
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Source
View on Economic Times