Centre cuts windfall tax on domestic crude oil

New Delhi, September 16

Advertisement

The Centre today reduced the windfall tax levied on locally produced crude petroleum producers from Rs 13,300 a tonne to Rs 10,500 and cut the tax on exports of aviation turbine fuel (ATF) to Rs 5 per litre from Rs 9.

The levy on export of diesel was reduced to Rs 10 per litre from Rs 13.50 per litre, according to a gazette notification. International oil prices have fallen to a six-month low this month, leading to a reduction in the windfall profit tax.

The basket of crude oil that India buys has averaged USD 92.67 per barrel in September as against USD 97.40 in the previous month.

The windfall levy on domestic crude targets producers like state-owned Oil and Natural Gas Corporation and Vedanta Limited.