Govt cuts windfall tax on domestic crude, export of diesel, ATF

The government cut the windfall gains tax on domestically produced crude oil to zero on Tuesday.

It also marginally increased export duty on diesel to Rs one per litre from Rs 0.50 while keeping both petrol and Aviation Turbine Fuel (ATF) exempted from the export levy. The new rate will be effective from March 21.

The Indian government has increased the windfall tax on crude petroleum to Rs 7,100 per tonne from Rs 4,250 per tonne with effect from August 15. This comes just weeks after the government had hiked the tax to Rs 4,250 per tonne from Rs 1,600 per tonne. Special Additional Excise Duty on diesel will also see a rise, being hiked to Rs 5.50 per litre from Re 1 per litre at present, and a duty of Rs 2 per litre will be imposed on jet fuel or ATF from August 15.

Exports of petrol will continue to attract nil duly. The new rates will be applicable from March 4. India imposed windfall profit taxes on July 1, 2022, by imposing export duties of ₹6 per litre on petrol and ATF and ₹13 a litre on diesel.

The Central govt. on May 16, 2023, cut the windfall gains tax on domestically-produced crude oil to nil while continuing the rate at zero on the export of diesel and Aviation Turbine Fuel

Meanwhile, the government increased the export duty on diesel to Re 1 per litre from Rs 0.50.

The government on Tuesday cut special additional excise duty (SAED) on crude petroleum to Rs 9,050/tonne with effect from October 18.In the last fortnightly review on September 29, windfall tax on domestically produced crude oil was set at Rs 12,200/tonne.