Windfall tax on crude cut by 31%, export duty on diesel halved

The government cut the windfall tax on domestically-produced crude oil to Rs 8,000 per tonne from Rs 10,500, and halved the levy on export of diesel to Rs 5 per litre, effective Sunday. It also scraped a levy of Rs 5/litre on export of jet fuel, at the sixth fortnightly review of the one-off taxes on oil companies.

The taxes were introduced on July 1, as the government felt that the elevated crude prices were allowing oil companies to make windfall profits, and that the exchequer must get a share of such gains.