Govt cuts windfall tax
New tax rates on crude oil, export of diesel and ATF come into effect from Feb 16
image for illustrative purpose
- Levy on crude oil produced by domestic cos cut to Rs4,350/tonne
- Tax on export of diesel lowered to Rs2.5/ litre from Rs7.5
- Tax on ATF overseas shipments reduced to Rs1.50/ litre from Rs6
- Govt levies tax on windfall profits on any price above a threshold of $75/bbl
New Delhi: The government has cut windfall profit tax on export of diesel and ATF to their lowest, while also reducing the levy on domestically-produced crude in line with softening 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 cut to Rs4,350 per tonne from Rs5,050 per tonne, the order dated February 15 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 cut the tax on export of diesel to Rs2.5 per litre from Rs7.5, and the same on overseas shipments of ATF to Rs 1.50 a litre from Rs 6 a litre.
The new tax rates come into effect from February 16. The reduction follows an increase in the levy effected earlier this month. The export levy on diesel is the lowest since the tax was introduced in July last year. The rate on export of jet fuel (ATF) equals the lowest rate hit in second half of December.
