News Oil & Gas

Centre slashes windfall tax to Rs 4,100 per tonne

India Monday slashed windfall tax on domestically produced crude oil to ₹4,100 per tonne from ₹6,400 per tonne.

The export duty exemption for petrol, diesel and aviation turbine fuel will continue. The duty will be effective May 2, according to a notification issued by the Central Board of Indirect Taxes and Customs.

In the previous revision, the government had reimposed the windfall profit tax on domestically produced oil from zero to ₹6,400 per tonne and scrapped export duty on diesel.

The latest revision comes on the back of softening in oil prices.

The tax rates are reviewed every fortnight based on the average oil prices in the previous two weeks.

India first imposed the windfall profit tax on July 1 last year, then joining a growing number of nations that tax supernormal profits of energy companies.

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