Govt cuts windfall tax on petroleum crude, will be effective from Oct 18

India has cut windfall tax on petroleum crude, aviation turbine fuel and diesel, according to a government notification on Tuesday.

The windfall tax on petroleum crude will be reduced to 9,050 Indian rupees ($108.74) per ton from 12,200 Indian rupees per ton, effective Oct 18.

The government also cut windfall tax on aviation turbine fuel to 1 rupee per litre from 3.50 rupees per litre and reduced windfall tax on diesel to 4 rupees per litre from 5 rupees per litre.

Last month, on Sept 29, government had increased windfall tax on petroleum crude, while reduced it on aviation turbine fuel and diesel. The windfall tax on petroleum crude was raised to 12,100 rupees ($145.65) per ton from 10,000 rupees ($120.37).

While, the levy on aviation turbine fuel had been reduced to 2.50 rupees per litre from 3.50 rupees per litre, and levy on diesel had been cut to 5 rupees per litre from 5.50 rupees.

On Sept. 16, the government had raised the windfall tax on petroleum crude to 10,000 rupees per ton from 6,700 rupees.

Fovt imposed the windfall tax on crude oil producers in July last year and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.

(Inputs from Reuters)

First Published: Oct 17 2023 | 11:18 PM IST

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