New Delhi: The Union government increased the windfall tax on domestically produced crude oil. The government will impose windfall tax at Rs 6,400 per tonne. The government also scrapped export duty imposed on diesel. The export duty exemption for petrol and aviation turbine fuel (ATF) will continue. The duty will be effective from 19 April 2023. The Central Board of Indirect Taxes and Customs announced this.
Earlier the Union government had reduced the windfall profit tax on domestically produced petrol to 0 while it has halved the levy on the export of diesel to Rs 0.50 per litre.
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India is the world’s largest consumer and importer of crude oil. The Union government in July last year imposed the windfall tax on crude oil producers and levies on exports of petrol, diesel and aviation fuel. Windfall tax is levied as a special additional excise duty which is aimed at absorbing the super-profits earned by domestic crude oil producers due to high global crude, product prices. The Union government reviews the windfall tax and associated rates in a fortnightly manner.
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).
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