Centre increases windfall tax on crude oil

The government has hiked the windfall tax on domestically produced crude oil to Rs 5,050 per tonne from Rs 1,900 per tonne in its fortnightly review, which would have an impact on the shares of state-owned oil producers such as ONGC and Oil India when the markets open on Monday.

The government in a notification issued last night revised the windfall tax rates effective from Saturday.

According to the revisions, tax on diesel for export will increase to Rs 7.5/litre from Rs 5/litre. Further, tax on overseas shipment of ATF will now increase to Rs 6/litre from Rs 3.5/litre, while that on petrol will continue to be nil. The government expects to collect Rs 25,000 crore this financial year from windfall gains tax.