The central government has increased the excise duty on the export of petrol, diesel, and ATF. On petrol, the export duty has increased by Rs 5 per liter and on diesel by Rs 12 per liter. Central excise duty on the export of ATF (Aviation Turbine Fuel) has been increased by Rs.6 per liter.
The purpose of the government behind increasing the export duty is to increase the availability of fuels like petrol-diesel and ATF in the domestic market. That is, it is a positive step for the common man. This move of the government will not affect the prices of fuel in the domestic market.
The tax on exports follows oil refiners, particularly the private sector, reaping huge gains from exporting fuel to markets such as Europe and the US. The speculations of imposing such taxes were going on since May this year when the UK government had announced a 25% windfall tax on profits of oil and gas companies with crude surging over 50% in 2022 so far.
Harish Madhav, Oil India’s group finance director, said “there is nothing concrete going on with respect to this windfall tax, it is only being talked about in the circles and there is no concrete proposal which we are aware of,” while talking about the windfall tax.
This decision has been taken by the government to ensure that there is no shortage of fuel in the country. This will also help in controlling the prices in the domestic market. That is, there will be no effect on fuel prices in the domestic market. The government has instructed exporters to sell 50 percent of their petrol in the domestic market. At the same time, 30 percent diesel has also been directed to be sold in the domestic market. With this move, the government also seems to be benefiting in the era of expensive crude. This will help in meeting the fuel consumption in the domestic market.
Actually, companies were exporting more for some time. Due to export, oil was falling in the domestic market and due to this, there was a fear of an increase in prices. This decision of the government will help in keeping the prices under control, while the common man will also get its benefit. At the same time, the government has imposed an additional tax of Rs 23,230 per tonne on domestic crude oil production. With this, the unforeseen profit accruing to the producers from the high international oil price can be removed.
Export duty on Gold:
The government has increased the import duty on gold by 5 percent from today i.e. from July 1, 2022. That is, now importing gold will be 5 percent more expensive than before. Bullion Expert believes that due to this, the price of gold in the physical market can also increase by at least Rs 1000 per 10 grams. Let us inform you that till now the import duty on gold was 7.5 percent, which will now increase to 12.5 percent.
Last year, the government had cut import duty in the budget. Earlier there was an import duty of 12.5 percent on gold and silver, which was reduced to 7.5 percent in Budget 2021.
“There has been a sudden surge in imports of gold. In the month of May, a total of 107 tonnes of gold was imported and in June also the imports have been significant. The surge in gold imports is putting pressure on the current account deficit,” a notification by the finance ministry said. According to the World Gold Council, India’s purchases in 2021 reached their highest in 10 years.