Govt cuts windfall tax on crude oil, ATF, export of diesel

The government has cut the windfall tax on the export of diesel to Rs 2.5 per litre from Rs 7.5. The levy on overseas shipments of ATF has been reduced to Rs 1.50 a litre from Rs 6 a litre, while that on domestically-produced crude was cut in line with softening international oil prices, according to an official order.

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been cut to Rs 4,350 per tonne from Rs 5,050 per tonne, the order dated February 15 said. The new tax rates come into effect from February 16.

The reduction follows an increase in the levy earlier this month.