The government has reduced the windfall tax on domestically produced crude oil to nil from Rs 4,100 per tonne, while the levy on exports of diesel remained unchanged at zero, according to an official statement by the Ministry of Finance.
In the previous fortnight, the government had reduced the windfall tax on crude oil produced by companies such as Oil and Natural Gas Corp. Ltd., to Rs 4,100 per tonne from Rs 6,400 per tonne.
The new tax rates will take effect on May 16, the official statement said.
The tax rates are reviewed every fortnight based on the average crude oil price. India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax supernormal profit of energy companies.
At that time, export duties of Rs 6 per litre, or $12 per barrel, were levied on petrol and ATF and Rs 13 per litre, or $26 per barrel, on diesel.
A windfall profit tax of Rs 23,250 per tonne, or $40 per barrel, 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 on March 4.
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