The Centre has slashed special additional excise duty, commonly known as windfall tax, on domestically produced crude oil, to nil from Rs 3,500 a tonne, effective from April 4, according to a notification on Tuesday.
Further, it has reduced the levy on diesel to 50 paise per litre from Rs 1.
This means crude oil, aviation turbine fuel (ATF), and petrol will not attract windfall tax.
The move is expected to give significant relief to top fuel exporters like Reliance Industries, and oil explorers like Oil and Natural Gas Corporation (ONGC).
The decision has been taken after a detailed review of global crude oil prices, a government official told Business Standard.
