Windfall profit tax on export of diesel hiked

Tribune News Service

New Delhi, August 19

The government has revised the newly introduced windfall tax levied on crude oil, diesel and aviation turbine fuel (ATF) for the third time. The tax on domestically produced crude oil has been reduced to Rs 13,000 per tonne from Rs 17,750 per tonne while tax on exports of jet fuel has been hiked to Rs 2 per litre from zero. The excise duty on the exports of diesel has been hiked to Rs 7 per litre from Rs 5 per litre earlier. The excise duty on the exports of petrol continues to be nil.

• Windfall tax on the export of diesel has been hiked to Rs 7 per litre
• The windfall tax on jet fuel exports has been brought back at 2%
• The tax on domestically produced crude oil has been cut to Rs 13,000 per tonne from Rs 17,750

This is the third revision in the windfall tax imposed on July 1. It is reviewed fortnightly taking into consideration the global crude prices. The new rates will be applicable from August 19, according to a notification issued by the Finance Ministry.

At the time of imposing the windfall tax, the government had said the move is meant to shore up domestic supplies as refiners were preferring to export than to meet the local requirements. In the second revision earlier this month, the government had scrapped the windfall profit tax on ATF exports and cut the tax on domestically produced crude oil to Rs 13,000 per tonne. On July 1, the government had levied export duties of Rs 6 per litre on petrol and ATF, Rs 13 per litre on the export of diesel and Rs 23,250 per tonne on domestic crude production.

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