News Oil & Gas

windfall tax: Centre slashes Windfall tax to Rs 1,300/ tonne


The government has slashed windfall tax On domestically produced crude oil to Rs 1,300 per tonne from Rs 5,000 per tonne on softening of crude oil prices in the international market.

The centre has also reduced export duty on diesel to Rs 0.50 per litre from one per litre while it increased export duty on Aviation Turbine Fuel (ATF) to Rs one per liter from earlier nil duty.

Export duty on petrol will continue to be nil.

The new rates will be effective Tuesday, the central board of indirect taxes and customs (CBIC) said in a notification.

Earlier on December 1, the government had decreased in the windfall tax on crude petroleum to Rs 5,000 per tonne from Rs 6,300/tonne.

India first imposed windfall profit taxes on July 1, 2022, joining several nations that tax windfall profits of energy companies. It imposed export duty of Rs 6 per litre on petrol and ATF, and Rs 13 per litre on diesel and windfall tax on domestic crude production.The tax rates are reviewed every fortnight based on the average oil prices in the previous two weeks.


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