Reliance, Nayara face windfall profit tax on local supplies alongside exports

The just-introduced tax on windfall energy profits of oil refiners like Reliance Industries is not only levied on the diesel they export but also on the supplies they make to fuel retailers within India, sources said.

The government on July 1 levied Rs 13 per litre additional excise duty on diesel exported out of India. A Rs 6 a litre tax was also imposed on petrol and ATF exported out of India. Alongside, it imposed export restrictions, subject to meeting domestic sales of 50 per cent for petrol and 30 per cent for diesel exports.

In subsequent fortnightly reviews, the government scrapped the export tax on petrol and jet fuel (ATF) and more than halved the export tax on diesel to Rs 5 per litre.