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Business News/ Industry / Energy/  Govt raises windfall tax on crude; export duty on ATF scrapped
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Govt raises windfall tax on crude; export duty on ATF scrapped

The finance ministry has, however, scrapped the export duty on ATF. The export duty on diesel has been lowered to ₹0.5 per litre. The taxes are reviewed every fortnight.

Govt raises windfall tax on crude; export duty on ATF scrappedPremium
Govt raises windfall tax on crude; export duty on ATF scrapped

NEW DELHI: Centre has marginally raised the windfall tax on locally produced crude oil to 4,400 per tonne.

For the past two weeks, the windfall tax stood at 4,350 per tonne.

The finance ministry has, however, scrapped the export duty on aviation turbine fuel (ATF). The export duty on diesel has been lowered to 0.5 per litre. The taxes are reviewed every fortnight.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels such as petrol, diesel and ATF.

The windfall profit tax was imposed last year after crude oil prices soared in the aftermath of the Russia-Ukraine war, fetching large profits for oil producers. The government reviews the tax rates every fortnight to calibrate the tax mop-up.

According to officials, the tax rate absorbs only a part of the extra profits that the companies earn in global markets during a period of high prices.

Revenue secretary Sanjay Malhotra had told Mint in a post-budget interview on 4 February that the government estimates around 25,000 crore of revenue receipts in the current fiscal from the windfall profit tax.

Malhotra also said then that in the case of petrol, it has already been removed and the levy will apply to crude oil and products only if there is a windfall profit.

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Published: 04 Mar 2023, 03:29 PM IST
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