Government Cuts Windfall Tax On Crude, Diesel

The Ministry of Finance has reduced the windfall tax on domestically produced crude and the levy on diesel.

The windfall tax on crude oil has been decreased from Rs 5,000 per tonne to Rs 1,300 per tonne, according to a gazette notification.

The levy on diesel has been decreased from Re 1 per litre to Rs 0.50 per litre. The export tax on petrol remains nil, while that on aviation turbine fuel has been hiked to Re 1 per litre.

The new tax rates will take effect on Dec. 19, the notification said.

India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax the supernormal profit of energy companies.