Windfall tax on diesel exports hiked, levy on crude oil slashed

New Delhi, March 21

The government has hiked the windfall profit tax on export of diesel to Re 1 per litre while the levy on domestically produced crude oil has been cut by a fifth, according to an official order.

The levy on crude oil produced by companies such as ONGC has been reduced to Rs 3,500 per tonne from Rs 4,400 per tonne, the order dated March 20 said.

The government raised the tax on export of diesel to Re 1 per litre from Rs 0.50, and the same on overseas shipments of ATF remains at nil. The new tax rates come into effect from March 21, the order said.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF).

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax super normal profits of energy companies. At that time, export duties of Rs 6 per litre ($12 per barrel) each were levied on petrol and ATF and Rs 13 a litre ($26 a barrel) on diesel. — PTI

New rates effective immediately

• Windfall profit tax on export of diesel has been hiked to Rs 1 per litre from Rs 0.50 per litre earlier
• The levy on crude oil produced by companies such as ONGC has been reduced to Rs 3,500 per tonne from Rs 4,400 per tonne
• The new tax rates come into effect from March 21