Government slashes windfall gain tax on crude oil, export of ATF & Diesel

16 Feb 2023 , 02:44 AM

The government has reduced the windfall profit tax levied on domestically produced crude oil as well as diesel and ATF exports.

Windfall tax on crude petroleum was reduced from Rs 5,050/tonne to Rs 4,350, while special additional excise duty on ATF was reduced from Rs 6/litre to Rs 1.50/L. Diesel’s special additional excise duty has been reduced from Rs 7.50/L to Rs 2.50/L.

The government raised the windfall tax on domestically produced crude oil, as well as on the export of diesel and ATF, on February 4.

India became the first country to impose windfall profit taxes on energy companies on July 1. At that time, export duties on petrol and ATF were Rs 6 per litre (USD 12 per barrel), and diesel was Rs 13 per litre (USD 26 per barrel).

The petrol export tax was abolished in the first review.

A windfall profit tax of Rs 23,250 per tonne (USD 40 per barrel) was also imposed on domestic crude production.

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