Explorer

Govt Cuts Windfall Tax On Crude, Export Taxes On Aviation Turbine Fuel And Diesel

The government in the first week of January raised windfall profit tax levied on domestically produced crude oil as well as on the export of diesel and ATF in line with firming international oil prices

The government has cut its windfall tax on crude oil and exports of aviation turbine fuel (ATF) and diesel, according to a notification on Monday. It cut its windfall tax on crude to Rs 1,900 ($23.28) per tonne from Rs 2,100 per tonne, effective Tuesday.

The Centre also cut export tax on ATF to Rs 3.5 per litre from Rs 4.5 per litre, and cut export tax on diesel to Rs 5 per litre from Rs 6.5 per litre, the notification said.

India, a major consumer and importer of oil, has been buying Russian crude at well below a $60 price cap agreed by the West. India in July imposed the windfall tax on crude oil producers and levies on exports of gasoline, diesel and aviation fuel after private refiners sought overseas markets to gain from robust refining margins, instead of selling more cheaply at home.

The government in the first week of January raised windfall profit tax levied on domestically produced crude oil as well as on the export of diesel and aviation turbine (ATF) in line with firming global oil prices.

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been increased to Rs 2,100 per tonne from Rs 1,700 per tonne, the order dated January 2, said.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuel like petrol, diesel and aviation turbine fuel (ATF). The government has also raised the tax on the export of diesel to Rs 6.5 per litre, from Rs 5 and the same on overseas shipments of ATF to Rs 4.5 a litre, from Rs 1.5 a litre. The new tax rates are effective from January 3.

Tax rates were cut at the last fortnightly review on December 16, following a decline in global crude oil prices. International oil prices have since then firmed up, necessitating the raising of windfall tax.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

GRAP 3 In Delhi From Tomorrow As AQI Remains In 'Severe' Category. Details Here
GRAP 3 In Delhi From Tomorrow As AQI Remains In 'Severe' Category. Details Here
AAP's Mahesh Kumar Khichi Elected As Delhi's New Mayor Amid Cross-Voting
AAP's Mahesh Kumar Khichi Elected As Delhi's New Mayor Amid Cross-Voting
Lahore AQI Worse Than Delhi, NASA Shares Smog Photos As Pakistani City Reports 15,000 Respiratory Cases
Lahore AQI Worse Than Delhi, NASA Shares Smog Photos As Pakistani City Reports 15,000 Respiratory Cases
Jharkhand Richest Candidate Has Assets Worth Rs 402 Crore, CM Hemant Soren In Top-10 Richest List
Jharkhand Richest Candidate Has Assets Worth Rs 402 Crore, Hemant Soren In Top-10 Richest List
Advertisement
ABP Premium

Videos

Nirmala Sitharaman Announces Game-Changing Collateral-Free Loan Scheme for MSMEsSIP Emerges as a Safe Investment Amidst Market Fluctuations | Paisa LiveTop Banks Offering 8.75% Interest for Senior Citizens: Here’s What You Need to Know!RBI Set to Make a Big Decision on Your EMI: What You Need to Know!

Photo Gallery

Embed widget