Government cuts windfall tax on domestic crude oil, ATF and diesel exports

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New Delhi: In response to the fall in the price of crude internationally, the government lowered the windfall tax, taxes and cess on domestic crude, and reduced duties and cesses on exports of aviation turbine fuel and diesel.

According to a notification by the Central Board of Indirect Taxes and Customs (CBIC), the tax on domestically produced crude oil has been reduced from Rs 13,300 to Rs 10,500 per tonne.

Diesel will now be exported at Rs 8.5 per liter instead of Rs 13.5. The ATF shipment will also cost Rs 5 per liter instead of Rs 9 per litre.

The new rates will be effective from September 17.

The change comes after the Indian crude basket averaged $92.53 a barrel in September, from $97.4 a barrel in August.

Since it came into effect from July 1, there have been five amendments to the windfall tax.

The government hiked unexpected taxes in the fourth review on 31 August. Diesel export has now increased from Rs 7 to Rs 13.5 per litre. Similarly, an additional charge of Rs 9 per liter was added to ATF shipments. Additionally, the government increased the levy on domestically produced crude oil from Rs 13,000 per tonne to Rs 13,300 per tonne.

On July 1, the Center imposed special additional excise duty of Rs 23,250 per tonne on crude and export taxes of Rs 6 per liter, Rs 13 per liter and Rs 6 per liter on petrol, diesel and ATF respectively.

The tariff on petrol was later repealed.



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