Centre raises windfall tax on domestic crude, cess on ATF exports
The special additional excise duty on export of diesel has been increased from ₹6 to ₹12 per litre
PremiumNEW DELHI : The union government has increased the windfall tax on sale of locally produced crude oil to ₹13,300 per tonne.
The revision comes into effect from 1 September, 2022.
For nearly two weeks, the sale of crude oil produced in India attracted an additional duty of ₹13,000 per tonne, after it was lowered from ₹17,750 per tonne with effect from August 19.
Centre has also revised the cess on export of aviation turbine fuel (ATF) upwards to ₹9 per litre from ₹2 per litre.
The special additional excise duty on export of diesel has been increased from ₹6 to ₹12 per litre.
On July 1, Centre imposed an export duty of ₹6 per litre on petrol and ATF and a ₹13 a litre duty on export of diesel. A windfall tax of ₹23,250 per tonne was imposed on the sale of domestic crude.
The taxes were first reviewed on 20 July, wherein the ₹6 per litre duty on petrol exports was scrapped and the tax on the export of diesel and jet fuel (ATF) was reduced ₹11 and ₹4 respectively.
Revenue Secretary Tarun Bajaj had said after the imposition of the tax on 1 July that it would be reviewed every 15-days factoring in the foreign exchange rate and global crude prices, among other factors.
Government first imposed windfall taxes on July 1 amid high profits incurred by oil and gas companies due to elevated energy prices on the back of the Russia-Ukraine conflict. Domestic producers sell crude to refiners at prices benchmarked on international prices. The bellwether Brent crude prices were largely at multi-year high levels since February till a month back.
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