Windfall Tax: Govt cuts windfall tax on domestic crude, hikes duty on diesel, ATF

The Centre has reduced windfall gain tax on domestically produced crude oil marginally to ₹6,700 per tonne from ₹7,100 per tonne.

The export duty on diesel is increased to ₹6 per litre from earlier₹5.50 per litre. The government also increased duty on Aviation Turbine Fuel (ATF) to ₹4 per litre from the earlier₹2 litre.

The duty on petro exports will continue to be nil.

The new duty will be effective from September 2, a notification issued by the Central Board of Indirect Taxes and Customs (CBIC) said.
The Centre on August 14 had revised windfall tax on domestically produced crude oil to ₹7,100 per tonne from ₹4,250 per tonne. On July 1, 2022 the government imposed an export duty of ₹6 per litre on petrol and ATF and a ₹13 per litre duty on export of diesel. A windfall tax of ₹23,250 per tonne was imposed on the sale of domestic crude. Since then, the Centre has been reviewing the levies every fortnight or so based on global crude oil prices.

Hike in LPG price

The price of commercial LPG, used in establishments such as hotels and restaurants, was reduced by ₹157.50 per cylinder. A 19-kg commercial LPG cylinder now costs ₹1,522.50 in the national capital. The reduction comes on the back of a ₹100 per cylinder cut effected from August 1. – Our Bureau