Windfall profit tax on domestic crude, exports of diesel, jet fuel raised
The government has raised the windfall profit tax on domestically produced crude oil by ₹300 to ₹13,300 per tonne after a fourth fortnightly review. It also increased the levies on exports of diesel and aviation turbine fuel (ATF) to ₹13.50 per tonne and ₹9 a litre, an official notification said.
After reviewing global oil prices and margins of Indian petroleum refining companies the government raised the levy on exports of diesel from ₹7 a litre to ₹13.50. Exports of ATF will now attract ₹9 per litre windfall tax instead of ₹2 per litre that prevailed till August 31, according to the Union finance ministry’s order issued late Wednesday night.
A finance ministry official said the windfall tax on domestically produced crude oil is based on an abnormal hike in its rate in the international market. Indian oil producers align domestically-produced crude oil rates as per the movement of international benchmarks. The levy on exports of petroleum products such as diesel and ATF depends on the refiners’ profit margins.
