The government imposed a tax of Rs 6 per litre on the export of petrol and aviation turbine fuel

Tags: Economy/Finance

The Union Government has imposed a tax of 6 rupees per litre on exports of petrol and Aviation Turbine Fuel and 13 rupees per litre on exports of diesel.

  •  To curb the import of gold, the import duty on gold has been increased from 10.75 percent to 15 percent.

  • A cess of Rs 23,250 per tonne (by way of special additional excise duty) or windfall tax has been imposed on crude oil. 

  • A cess of Rs 23,250 per tonne (by way of special additional excise duty) or windfall tax has been imposed on crude oil. 

  • Petroleum duty changes

  • The domestic crude producers sell crude to domestic refineries at international parity prices.

  • So, domestic crude producers are making windfall gains.

  • Keeping this in mind, a cess of Rs 23,250 per tonne has been imposed on crude oil.

  • Import of crude will not be subject to this cess. 

  • Refiners export these products at globally prevailing prices, which are very high.

  • As exports are becoming highly profitable, it has been observed that some refiners are drying their pumps in the domestic market.

  • Therefore, a cess of Rs 6 per litre on petrol and Rs 13 per litre on diesel has been levied on their exports.

  • Gold import duty changes

  • There has been a sudden jump in gold imports.

  • In May, a total of 107 tonnes of gold was imported. 

  • The rise in gold imports is putting pressure on the current account deficit.

  • To curb the import of gold, the customs duty has been increased to 15% from the existing 10.75%.

  • Earlier, the basic customs duty on gold was 7.5 per cent, which will now be 12.5 per cent.

  • Along with the Agriculture Infrastructure Development Cess (AIDC) of 2.5 per cent, the effective customs duty on gold will go up to 15 per cent.

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