Windfall tax on domestic oil producers slashed as global crude prices fall

New Delhi: India on Wednesday cut a windfall tax on diesel and aviation fuel exports by Rs 2 per liter, news agency Reuters reported citing a government notification.

Besides, the government also slashed the tax on domestically produced crude to Rs 17,000 a tonne, effective July 20.

Early this month, the government had announced the levy of additional excise duty/cess of Rs 6 per litre on petrol and Rs 13 per litre on diesel exports.

The government had also announced the levy of additional excise duty/cess of Rs 23,250/tonne on crude oil as special additional excise duty, since domestic crude producers sell to domestic refineries at international parity prices, and as a result, are making windfall gains.

Similarly in the case of aviation turbine fuel (ATF) exports, a special additional excise duty of Rs 6 per litre was announced.

Notably, crude prices have slumped in the last one month amid concerns over a global recession.

With Reuters Inputs