Govt Cuts Windfall Tax On Crude Oil To Nil. Tax On Diesel Also Slashed To Rs 0.5 Per Litre
There is no windfall tax on petrol and ATF. The windfall tax rates are reviewed every fortnight based on average oil prices in the previous two weeks
The Centre has cut windfall tax on crude oil from Rs 3,500 ($42.56) per tonne to nil effective from Tuesday. According to a notification by the Department of Revenue, the windfall tax on diesel was also slashed to Rs 0.5 per litre from Rs 1 per litre earlier. The decision comes at a time when OPEC+ decided to cut production. The move led to Brent rising by almost 6 per cent to $84.58 per barrel on Monday, reported PTI.
There is no windfall tax on petrol and ATF. The windfall tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.
The windfall profit taxes were first imposed on July 1, 2022, as India joined a growing number of nations that tax super normal profits of energy companies. At that time, petrol and ATF attracted export duties of Rs 6 per litre ($12 per barrel) each, and Rs 13 a litre ($26 a barrel) was levied on diesel. A Rs 23,250 per tonne ($40 per barrel) windfall profit tax on domestic crude production was also levied.
The government, on March 20, slashed the windfall tax by Rs 900 per tonne to Rs 3,500 per tonne from Rs 4,400 per tonne. However, it had hiked the export duty on diesel from Rs 0.50 per litre to Rs 1 per litre.