Windfall tax cut on domestic crude oil by Rs 900 per tonne

Windfall Tax Cut News India: The government on Monday reduced windfall tax on domestic production of crude petroleum to Rs 3,500 per tonne from Rs 4400 per tonne. A special additional excise duty on diesel was hiked to Rs 1 per litre from Rs 0.50 per litre while ATF and petrol duty continue to have nil special additional excise duty.

The new rate will be effective from March 21, Tuesday.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF).

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

India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax super normal profits of energy companies. At that time, export duties of Rs 6 per litre (USD 12 per barrel) each were levied on petrol and ATF and Rs 13 a litre (USD 26 a barrel) on diesel.

A Rs 23,250 per tonne (USD 40 per barrel) windfall profit tax on domestic crude production was also levied.

The export tax on petrol was scrapped in the very first review and that on ATF was done away with at the last review on March 4.

(With PTI inputs)

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.

 Also read- Income Tax slabs, rates and exemptions for senior citizens: Know how income tax on pension is calculated