After raising taxes on the export of petrol, diesel and ATF, along with an additional windfall tax imposition on gains made by domestic refineries, restrictions have been placed on fuel exports to ensure adequate availability of stock in the country.
The Centre has imposed export restrictions on petrol and diesel by directing exporters to supply a specified quantity in the domestic market. Earlier, a Rs 6 per litre tax levied on ex-ports of petrol and ATF and Rs 13 per litre on exports of diesel.
The government also imposed Rs 23,230 per tonne additional tax on domestically produced crude oil to take away windfall gains accruing to producers from high international oil prices, a notification showed.
According to the latest notification of the Directorate General of Foreign Trade (DGFT), motor gasoline (petrol) exporter is “required to submit a self-declaration to the concerned customs authority at the time of export confirming that 50 per cent of quantity mentioned in the shipping bill has been/will be supplied in the domestic market during the current financial year”.
For gas oil or automotive diesel exporters, the quantity has been fixed at 30 per cent. However, exports to Bhutan and Nepal are exempted from this condition.
The limit is also not applicable to 100 per cent Export Oriented Units (EoUs) and units in SEZs (Special Economic Zones). EoUs and SEZs are developed primarily for exports.
The notification said that the exporters will have to file a quarterly return to the ministry of petroleum and natural gas regarding the same.
India has joined nations like the UK in imposing a windfall tax on crude oil produced locally.
The export tax has been imposed to deter companies from preferring overseas markets over domestic supplies.
