The central government late on Monday slashed the windfall tax on domestic crude oil to Rs 3,500 per tonne from Rs 4,400 per tonne. Meanwhile, the government increased the export duty on diesel to Re 1 per litre from Rs 0.50. The revised rates come into effect from March 21, Tuesday.
The Centre has scrapped export duty on petrol and diesel. The government revised the windfall tax for the second time in March. Earlier the government on March 4 slashed the export duty on diesel to Rs 0.50 per litre, and that of locally produced crude oil to Rs 4,000 per tonne.
The windfall tax was first levied on July 1 last year after oil prices jumped due to the ongoing Russia-Ukraine war. The government had mandated that companies sell the equivalent of 50 per cent of their gasoline exports and 30 per cent of their diesel exports domestically in the current fiscal year to March 31.
The tax came into effect as private refiners Reliance Industries and Nayara Energy, who are the key buyers of discounted Russian supplies, were reaping major profits by aggressively boosting fuel exports instead of domestic sales.
The government has levied an export duty of Rs 6 per litre ($12 per barrel) each on petrol and ATF; Rs 13 a litre ($26 a barrel) on diesel; and Rs 23,250 per tonne ($40 per barrel) on domestic crude oil.
The windfall tax on petrol was scrapped in the first review of rates.
For Official Notification No.13/2023-Central Excise and Notification No.14/2023-Central Excise both dated March 20, 2023
Source from: https://indianexpress.com/article/business/centre-slashes-windfall-tax-on-domestic-crude-oil-8509229/