Centre revises windfall tax rates, big boost for ATF and diesel exports
The government on late Tuesday increased the windfall tax on domestically produced crude to Rs 17,750 a tonne from Rs 17,000 a tonne earlier, while lowered the export tax on diesel and aviation turbine fuel. This is the second round of the revision of the newly-introduced windfall levy. The new changes will come to effect from August 3.
The Central Board of Excise and Customs (CBIC), in its notification, has cut the levy on diesel to Rs 5 per litre from Rs 11 per litre earlier. In addition, it also scrapped Rs 4 per litre on export of aviation turbine fuel. However, the levy on export of petrol remained nil.
The government imposed the windfall tax from July 1 on exports by oil refiners and producers, announcing levies of Rs 6 per litre on every litre of petrol, Rs 13 on every litre of diesel, and Rs 23,250 on every tonne of domestically produced crude oil in a decision aimed at increasing local supplies and boosting its revenues.
On July 20, the government revised the rates wherein the windfall tax on crude has been reduced from Rs 23,250 per tonne to Rs 17,000 per tonne. The levy, imposed as export duty on diesel, has been reduced from Rs 13 per litre to Rs 10 and ATF from Rs 6 per litre to Rs 4 a litre.
The new tax was imposed after the domestic companies were seen to be making huge profits since global oil prices have shot up amid geopolitical turmoil.
While introducing the new levies, the government had said that it will review exports and imports of these items every fortnight to amend its decision.
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