Special additional excise duty/Cesses imposed on exports of petrol and diesel at the rate of Rs 6 per litre on Petrol and Rs 13 per litre on diesel
Special Additional Excise Duty (SAED) of Rs 6 per litre imposed on exports of Aviation Turbine Fuel
NO IMPACT OF ABOVE STEPS ON DOMESTIC FUEL PRICES
Customs duty on gold increased from 10.75% to 15%; step taken to help curtail Current Account Deficit
Jul 01, 2022 05:00 pm
I INCREASE OF CUSTOMS DUTY ON GOLD
Customs duty on gold has been increased from 10.75% to 15%.
There has been 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 current account deficit. To curb import of gold, customs duty has been increased from present 10.75% to 15%.
II DUTIES/CESSES ON PETROLEUM CRUDE, HSD, PETROL AND ATF
A. PETROLEUM CRUDE
A cess of Rs 23,250 per tonne (by way of special additional excise duty-SAED) has been imposed on crude.
Crude prices have risen sharply in recent months. The domestic crude producers sell crude to domestic refineries at international parity prices. As a result, the domestic crude producers are making windfall gains. Taking this into account, a cess of Rs. 23250 per tonne has been imposed on crude. Import of crude would not be subject to this cess.
Crude is sold by domestic producer at international parity price.
This cess will have no adverse impact, whatsoever, on domestic petroleum products/fuel prices.
Further, small producers, whose annual production of crude in the preceding financial year is less than 2 million barrels will be exempt from this cess.
Also, to incentivise an additional production over preceding year, no cess will be imposed on such quantity of crude that is produced in excess of last year production by a crude producer.
As stated above, this measure would not impact crude prices or the prices of petroleum products and fuels.
At the same time, EXPORT POLICY condition has been imposed by the DGFT that the exporters would be required to declare at the time of exports that 50% of the quantity mentioned in the shipping bill has been/will be supplied in the domestic market during the current FY.
These measures would not have any adverse impact on domestic retail prices of diesel and petrol. Thus, domestic retail prices would remain unchanged. At the same time these measures will ensure domestic availability of the petroleum products.
C. AVIATION TURBINE FUEL
A special additional excise duty (SAED) of Rs 6 per litre has been imposed on exports of Aviation Turbine Fuel.
Like HSD and Petrol, the international prices of ATF have risen sharply. Accordingly, on the same reasoning, as stated above for diesel and petrol, a cess of Rs 6 per litre has been imposed on exports of ATF.
This measure will not have any adverse impact on domestic prices of aviation.