The Centre on Monday slashed the windfall tax on crude oil from Rs 5,000 per tonne to Rs 1,300 per tonne. The windfall tax on diesel was lower to Rs 0.5 per litre from Rs 1 per litre, in keeping with a authorities notification.
In the meantime, the windfall tax on aviation turbine gasoline or ATF has been hiked to Rs 1 per litre from nil earlier.
The brand new charges come into impact from Tuesday (December 19).
In July 2022, India first imposed a windfall tax on crude oil producers and prolonged the levy on exports of gasoline, diesel and aviation gasoline as non-public refiners needed to promote gasoline abroad to make positive factors from strong refining margins as a substitute of promoting regionally.
The tax charges are reviewed each fortnight based mostly on common oil costs within the earlier two weeks.
The tax on domestically produced crude oil was lowered to Rs 5,000 per tonne from Rs 6,300 per tonne, an official notification on November 30 stated, which got here into impact from December 1.
In November, the Centre had slashed the windfall tax on crude oil from Rs 9,800 per tonne to Rs 6,300 per tonne. The windfall tax on diesel was lower from Rs 2 per litre to Rs 1.
A windfall tax is levied on home crude oil if the charges of the worldwide benchmark rise above $75 per barrel. Export of gasoline — diesel, aviation turbine gasoline (ATF) and petrol — appeal to the tax if product cracks (or margins) rise above $20 per barrel.
To make sure that home tax charges stay in line with world oil costs, the Centre critiques these charges each fortnight.
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