Govt hikes windfall tax amid rising oil prices
Tax on crude oil, export of diesel, ATF rises further; Govt also hiked the tax on export of diesel to Rs7.5 per litre from Rs5, and the same on overseas shipments of ATF to Rs6 a litre from Rs3.5 a litre
image for illustrative purpose
New Delhi: The government has hiked windfall profit tax levied on domestically-produced crude oil as well as on the export of diesel and ATF, in line with firming international oil prices, according to an official order.
The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been increased to Rs5,050 per tonne from Rs1,900 per tonne, the order dated February 3, 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 government has also hiked the tax on export of diesel to Rs7.5 per litre from Rs5, and the same on overseas shipments of ATF to Rs6 a litre from Rs3.5 a litre.
The new tax rates came into effect from February 4. The levy on both domestic crude oil and fuel exports is now off the lows it had hit last month. Tax rates were cut at the last fortnightly review on January 17, following softening in global oil prices. International oil prices have since then firmed, necessitating the hike of a windfall tax. India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies.
