Govt reduces windfall tax on crude oil to Rs 10,500 from Rs 13,000/tonne

The Indian government has reduced windfall tax on locally produced crude oil to Rs 10,500 from Rs 13,000/tonne, according to a circular issued by Ministry of Finance on September 16. Additionally, it has also reduced tax  export of diesel and ATF.

The decision came at the fifth fortnightly review after the Centre was “satisfied that it is necessary in the public interest to do so.” The notification will come into force from September 17.

The cess on the export of diesel was reduced to Rs 6.50 per litre from Rs 13.5, while the tax on Aviation Turbine Fuel (ATF) exports was cut to Rs 8.5 a litre, from Rs 9 per litre, according to the circular.

The change in windfall tax on crude, export duty on petrol, diesel and ATF comes after the announcement was made for the first time on June 30.

International oil prices have fallen to six-month lows this month, leading to a reduction in the windfall profit tax.

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