Windfall tax cut on oil producers expected; hike in levy on ATF, diesel exports surprising: Analysts

Windfall profit tax on local oil producers has been cut on expected lines but increasing the levy on jet fuel and diesel exports was a surprise as local markets are reasonably well-supplied, analysts said Friday.

At the third fortnightly review, the government has increased the windfall profit tax on the export of diesel to Rs 7 per litre from Rs 5 a litre and brought a Rs 2 a litre tax on ATF exports.

Earlier this month, the government scrapped the windfall profit tax on ATF (Aviation Turbine Fuel) exports.

Alongside, the tax on domestically produced crude oil has been cut to Rs 13,000 per tonne from Rs 17,750.