The Centre on Thursday cut the windfall profit tax on domestically produced crude oil from Rs 5,050 per tonne to Rs 4,350 per tonne. The additional excise duty on ATF was also cut to Rs 1.5 per litre from Rs 6 per litre earlier.
Further, the government also slashed tax on export of diesel to Rs 2.5 per litre from Rs 7.5 per litre. Petrol continues to have zero excise duty. The new rates will come into effect on February 16.
The windfall tax was first imposed on India first imposed windfall profit taxes on July 1, 2022 and is expected to continue due to high prices. It is likely to give about Rs 25,000 crore in the current fiscal ending March 31, top government officials said earlier this month to PTI.
