Centre slashes windfall tax on domestic crude oil, aviation fuel exports
India Today
The Centre reduced tax on domestically-produced crude oil to Rs 10,500 per tonne from Rs 13,300 per tonne.
The government on Friday cut the windfall profit tax on locally produced crude oil in line with a fall in international rates. The Centre also reduced the levy on export of diesel and jet fuel.
At the fifth fortnightly review, the government reduced tax on domestically-produced crude oil to Rs 10,500 per tonne from Rs 13,300 per tonne.
The levy on the export of diesel was reduced to Rs 10 per litre from Rs 13.5. Also, the tax on Aviation Turbine Fuel (ATF) exports was cut to Rs 5 a litre from Rs 9 with effect from September 17, according to a finance ministry notification issued late Friday night.
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International oil prices have fallen to six-month lows this month, leading to a reduction in the windfall profit tax.
The basket of crude oil that India buys has averaged USD 92.67 per barrel in September as against USD 97.40 in the previous month.
While private refiners Reliance Industries Ltd and Rosneft-based Nayara Energy are the principal exporters of fuels like diesel and ATF, the windfall levy on domestic crude targets producers like state-owned Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.
