New Delhi: In response to a drop in the price of crude oil internationally, the government reduced the windfall profits tax, the taxes and cess on domestic crude, and decreased the duties and cess on the export of aviation turbine fuel and diesel.
According to a notification from 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 export for Rs 8.5 per litre as opposed to Rs 13.5. ATF shipments would also cost Rs 5 per litre instead of Rs 9 per litre.
On September 17, the new rates will go into effect.
The change comes after the Indian crude basket moderated to an average price of $92.53 per barrel in September from an average price of $97.4 per barrel in August.
Since it went into effect on July 1st, the windfall tax has undergone five revisions.
The government increased the windfall taxes in the fourth review on August 31. Diesel exports now incur a price of Rs 13.5/litre, up from Rs 7. Similar to this, an additional fee of Rs 9/litre was added to ATF shipments, up from Rs 2. 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 implemented a special additional excise duty of Rs 23,250 per tonne on crude and export taxes of Rs 6 per litre, Rs 13 per litre, and Rs 6 per litre, respectively, on gasoline, diesel, and ATF.
The tariff on petrol was repealed subsequently.