New Delhi: According to an official gazette statement from the Ministry of Finance, India has reduced the windfall tax on the export of crude oil from Rs 11,000 to Rs 9,500 per tonne.
The windfall tax on the export of aviation turbine fuel (ATF) has increased from Rs 3.50 per litre to Rs 5, while for diesel, it has increased from Rs 12 per litre to Rs 13. Windfall taxes are levied on unanticipated or unforeseen significant profits.
India cuts windfall tax on crude oil, hikes for aviation fuel, diesel
— ANI Digital (@ani_digital) November 2, 2022
The amended tax structure will be announced in a notification that will go into effect right away.
According to a previous official announcement when implementing windfall profits taxes, it has been seen that some refiners are drying up their pumps in the domestic market as exports are becoming increasingly lucrative.
On July 1st, the government first implemented the windfall tax.
Availability of petroleum products
The government then said that it will assure domestic availability of petroleum products while having no impact on domestic retail prices for gasoline and diesel.
For the record, the Center had first imposed a cess of Rs 23,250 per tonne on crude oil, taking into account windfall gains amassed by domestic petroleum producers due to increased global crude prices in recent months.