Govt lowers windfall tax on domestic crude oil

21 Mar 2023 , 08:18 AM

On Monday, the centre lowered windfall gains tax on domestic crude oil output from Rs 4400 per tonne to Rs 3,500 per tonne.

Also, it maintained the exemption of gasoline and aviation turbine fuel (ATF) from the export charge while slightly raising the export tariff on diesel to Rs 1 per litre from Rs 0.50.

On March 21, the new tariff will go into effect.

The government slightly increased the windfall tax on locally produced crude oil on March 4 from Rs 4350 per tonne to Rs 4400 per tonne.

The export tariff for ATF was also eliminated, while the export duty for fuel was cut to Rs. 0.5 per litre.

On July 1, 2022, India implemented its first windfall profit taxes by implementing export tariffs of Rs6 per litre on gasoline and ATF and Rs13 per litre on diesel.

On domestic crude output, a windfall profit tax of Rs 23,250 per tonne was also imposed.

Every two weeks, the tax is changed in accordance with the price of crude oil on the world market.

The centre had informed parliament that it expected to raise Rs 25,000 crore from Special Additional Excise Tax (SAED) slapped on the windfall tax for the current fiscal year.

For feedback and suggestions, write to us at [e-mail]