Amid the moderation in global crude oil prices and drop in refining margins, the government on Tuesday undertook the second review of its recently imposed levies on fuel and cut the windfall tax on diesel by Rs 6 a litre. It, however, raised the tax levy on domestic crude oil production to Rs 17,750 a tonne from Rs 17,000 earlier.
The tax on export of diesel was cut to Rs 5 per litre from Rs 11, while that on aviation turbine fuel was scrapped, a notification issued by the Finance Ministry stated. Export of petrol will continue to attract nil tax. The changes will be effective Wednesday.
